SEATTLE (Scrap Monster): The World Gold Council (WGC) noted that gold used in industrial applications recorded decline during the second quarter of 2022.
According to WGC’s Gold Demand Trends Q2 2022 Report, the technology sector demand for gold totalled 78.4 tonnes during the quarter, down by 2% over the prior year quarter. The electronics sector- the single largest industrial consumer of gold- declined by 3% year-on-year to 64.4 tonnes. Meantime, the Other Industrial and Dentistry sector demands totalled 11.3 tonnes and 2.6 tonnes respectively during the quarter.
The re-emergence of COVID in China impacted the supply and demand for gold in the sector. The freshly imposed lockdown-related restrictions impacted chip supply chains, thus leading to reduced output. The dip was also attributed to overall fall in global electronics demand during the second quarter of the year, mainly on account of inflationary pressures and geopolitical issues.
The demand for gold in LEDs witnessed notable decline on the back of weakening consumer electronics demand and ongoing mini-LED penetration. The demand in wireless sector too posted decline. On the contrary, the memory sector recorded marginal increase in demand for gold during Q2.