The World Gold Council’s latest quarterly report shows that global gold demand remained resilient in the second quarter of 2024, reaching its strongest second-quarter level since the organization’s data series began in 2000. According to the report published on July 30, total gold demand, including over-the-counter (OTC) investment, rose to 1,258 tonnes, up 4% year over year.
The report presents a more nuanced picture beneath the headline number. Excluding OTC activity, gold demand in Q2 fell 6% from a year earlier to 929 tonnes. That decline was largely attributed to a steep contraction in jewelry consumption, which outweighed modest gains in other categories. Still, the addition of OTC investment changed the broader market picture, pushing overall demand to a record second-quarter level for the modern reporting era.
Central bank buying remained a core support
One of the biggest drivers of the quarter was continued official-sector accumulation. The World Gold Council said net central bank gold purchases reached 184 tonnes in Q2, representing a 6% year-on-year increase. The report linked that buying to ongoing demand for portfolio protection and diversification, a theme that has remained central to central bank gold strategies in recent years.
The persistence of central bank buying is notable because it signals that official institutions are still treating gold as a strategic reserve asset despite elevated prices. In an environment shaped by geopolitical uncertainty, reserve diversification efforts, and shifting monetary expectations, the official sector continued to provide a meaningful floor for aggregate gold demand.
High prices weighed heavily on jewelry demand
While central banks and OTC flows helped lift total demand, consumer-facing segments showed more strain. Jewelry demand dropped 19% year over year to 391 tonnes, the lowest second-quarter level in four years. The World Gold Council attributed much of that weakness to record-high prices.
Gold averaged $2,338 per ounce during the second quarter and climbed as high as $2,427 per ounce in May. Those price levels made jewelry purchases more expensive and appear to have discouraged buying in key consumer markets. The decline in jewelry demand illustrates the tension often seen in gold markets: high prices can support the asset’s appeal as a store of value while simultaneously eroding affordability for traditional end-users.
Retail investment and ETFs showed softer trends
The report also pointed to weaker performance in some investment segments. Retail demand for bars and coins fell 5% to 261 tonnes, with the World Gold Council citing weak demand from Western markets as a key factor. That suggests that although institutional and official buying remained constructive, retail sentiment was less robust in parts of the market.
Meanwhile, global gold exchange-traded fund holdings declined by 7 tonnes during the quarter. The decrease indicates that ETF flows did not provide the same scale of support as central bank purchases or OTC activity. Even so, the relatively modest size of the decline suggests that ETF-related selling was not severe enough to offset strength elsewhere in the market.
Supply expanded alongside demand
On the supply side, the market also grew. Total gold supply increased 4% year over year to 1,258 tonnes, matching total demand. Mine production reached 929 tonnes, marking a record for a second quarter, according to the report. Recycling supply also climbed to its highest second-quarter level since 2012, as elevated gold prices encouraged more selling of old gold back into the market.
The combination of record second-quarter mine production and stronger recycling flows underscores how higher prices can stimulate supply responses. Producers benefited from favorable pricing conditions, while consumers and holders of scrap gold had greater incentive to monetize existing holdings.
Technology demand rose on AI-related momentum
Another important detail in the report was the performance of the technology segment. Gold used in technology increased 11% year over year. The World Gold Council said the continued expansion of artificial intelligence-related activity helped drive demand in this category.
That gain stands out because it highlights a non-investment source of support for gold consumption. Although technology is a smaller segment than jewelry or investment, its double-digit growth shows that industrial and electronics-related applications remain a meaningful part of the broader gold demand story, particularly as AI-linked hardware demand continues to expand.
A market shaped by diverging demand channels
Overall, the World Gold Council’s Q2 findings show a gold market being pulled in different directions. On one side, high prices hurt jewelry demand and weakened some retail investment channels. On the other, central bank buying, OTC investment, stronger technology demand, and expanding supply kept the market active and pushed total demand to a multi-decade second-quarter high.
The data suggests that the gold market in 2024 is being supported less by broad-based consumer enthusiasm and more by institutional, official, and strategic buying. As long as central banks continue to prioritize reserve diversification and gold remains attractive for hedging and portfolio protection, that support could continue to offset softness in more price-sensitive areas of demand.
For market watchers, the key takeaway from the report is clear: despite pressure on jewelry consumption and mixed signals from ETFs and retail investors, gold’s role as a strategic asset remained firmly intact in the second quarter. That resilience was enough to deliver the highest Q2 demand reading since 2000.