Demand for gold surged to an 11-year high last year. This is due to large-scale purchases on the back of high activity by retail investors and a slowdown of ETF outflows.
Annual gold demand rose 18% to 4,741 tons. Unprecedented demand for the yellow metal recorded in Q4, with a total of 1,337 tons, also contributed to the high performance of gold in 2022.
Investment demand (excluding over-the-counter) moved closer to 1,107 tons (+10%) in 2022. Gold bullion sales increased by 2%, reaching 1,217 tons. Meanwhile, ETF holdings declined less than seen in 2021 (-110 tons vs. -189 tons), attracting more investments in the precious metal.
There was a high demand for gold from the central bank at the end of two consecutive quarters, which amounted to 417 tons. Annual purchases of the yellow metal hit a 55-year high of 1,136 tons, but the majority of this volume has not been reported.