Gold jumped today, adding to latest rebound as a break above $2400 per ounce extended and the medium term outlook remained broadly supported. World Gold Council or WGC noted that Gold prices continued to firm in Q2 and beyond, in line with total demand. WGC sees plenty of fundamental support for the market in H2. Revived Western investment flows should balance out weaker consumer demand and potentially slower central bank buying vs 2023. India’s recently announced duty cut bodes well for demand in that key market.

Global Gold demand excluding OTC in Q2 was down 6% y/y to 929t as a sharp decline in jewellery consumption outweighed mild gains in all other sectors. Adding in OTC investment to total gold demand yields a 4% y/y increase to 1,258t – the highest Q2 in WGC series back to 2000. Total Q2 gold supply rose 4% y/y as mine production increased 2% to a H1 record. Recycling also increased y/y in response to higher gold prices.

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