Wealthy Asian Investors Propel Gold Demand During Jewelry Slump

30 July 2024

Despite a slump in jewelry demand due to soaring gold prices, wealthy Asian investors are driving significant gold purchases, particularly in the over-the-counter market, leading to the highest second-quarter demand in 25 years.

The World Gold Council reported a 4% year-over-year increase in total gold demand, largely fueled by concerns over credit and financial conditions. While jewelry consumption fell sharply, investment in gold bars and coins rose, indicating a shift in consumer behavior.

Central banks also continued to buy gold, contributing to the overall demand despite rising prices.

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