SEATTLE (Scrap Monster): The Gold Demand Trends Q2 2022 Report released by the World Gold Council (WGC) points to notable rise in global demand for gold jewellery versus the same quarter in 2021. The consumption surged by 4% to total 453 tonnes during the quarter. The boosted demand in China and the Middle East offset declines in China and Russia.
The Chinese gold jewellery demand dropped by 29% to 103 tonnes in the second quarter of the year. The heritage gold jewellery continued to dominate. Looking ahead, WGC foresees continued weakness in the second half of the year despite chances of potential seasonal quarter-on-quarter rebounds.
The robust wedding and festival sales boosted Q2 gold jewellery demand in India to 140 tonnes, up by 49% from Q2 last year. The H1 demand stood 6% higher at 234 tonnes. The Indian gold jewellery demand is expected to remain mixed for the rest of the year.
The markets across the Middle East mainly witnessed year-on-year growth in Q2, mainly driven by the UAE and Iran. On the contrary, the Turkish gold jewellery consumption fell by 9% over the previous year to 7 tonnes during the quarter.
The Q2 demand in the U.S. grew 2% to 38 tonnes. The European jewellery demand recorded the strongest Q2 demand since 2016 at 15 tonnes. The Australian gold jewellery demand rose by 8% year-on-year to 3 tonnes.