This boost was largely fueled by a remarkable 53% rise in over-the-counter (OTC) transactions, totalling 329 tonnes.

The surge in OTC demand, sustained central bank purchases and reduced ETF outflows contributed to record-high gold prices in Q2. The average gold price soared to US$2,338 per ounce, up 18% from the previous year, with a peak of US$2,427 per ounce during the quarter.

Central banks and official institutions added 183 tonnes to global gold reserves, a slowdown from the previous quarter but still a 6% year-on-year increase. An annual central bank survey indicates that reserve managers anticipate further rises in gold allocations over the next year, driven by a desire for portfolio protection and diversification amid a complex economic and geopolitical landscape.

Gold investment globally remained resilient, slightly up year-on-year at 254 tonnes, despite contrasting demand trends. Bar and coin investment fell by 5% to 261 tonnes, due to a sharp drop in demand for gold coins. Strong retail investment in Asia was offset by reduced demand in Europe and North America, where profit-taking increased in some markets.

Global gold ETFs experienced minor outflows of 7 tonnes during the quarter. While Asian growth persisted, European outflows, which were substantial in April, turned into modest inflows in May and June, and North American outflows slowed notably compared to the previous quarter.

Record high gold prices led to a 19% year-on-year decline in jewellery demand for Q2. However, half-year demand remains robust compared to the same period last year, buoyed by a stronger-than-expected first quarter.

In the technology sector, gold demand rose by 11% year-on-year, largely driven by the AI boom, which spurred a 14% increase in gold use within electronics.

Total gold supply grew by 4% year-on-year, with mine production reaching 929 tonnes. Recycled gold volumes also saw a 4% increase compared to Q2 2023, marking the highest second-quarter total since 2012.