According to the “2022 Gold Demand Trends Report” recently released by the World Gold Council (WGC), global gold demand reached a record high of 1,337 tons in the fourth quarter of 2022. Last year, global gold demand grew by 18% over the previous year, reaching 4,741 tons—nearly matching the historic peak level of 2011 and marking the highest level in more than a decade. The primary drivers behind this surge include large-scale purchases by central banks, robust buying by retail investors, and a slowdown in outflows from exchange-traded funds.

　　Specifically, in 2022, global demand for gold investments reached 1,107 tons, an increase of 10% over 2021. Demand for gold coins and bars rose by 2% year-on-year to 1,217 tons. The decline in holdings of gold exchange-traded funds (ETFs) was less pronounced than in 2021, further boosting overall investment growth. Central banks around the world increased their gold reserves by 1,136 tons (worth approximately US$70 billion)—the largest increase since 1967. In the fourth quarter alone, central banks added 417 tons of gold, nearly matching the level recorded in 2021 (which saw an increase of 450 tons). Some analysts point out that despite ongoing geopolitical and macroeconomic uncertainties and volatility, global demand for gold is expected to continue its upward trend.

　　Meanwhile, last year gold jewelry consumption declined slightly by 3% to 2,086 tons. This decline became particularly pronounced in the fourth quarter, as rising gold prices further dampened consumer demand. In the fourth quarter, demand for gold in the technology sector plummeted, leading to a substantial 7% drop in annual demand overall—primarily due to the deteriorating global economic outlook, which curbed consumer demand for electronic products.

　　Regarding the 2023 trend outlook, the World Gold Council stated that, given the growing risks of economic recessions in the U.S. and Europe, gold’s upside potential outweighs its downside risks, and it remains bullish on global gold demand. In 2022, uncertain demand for gold exchange-traded funds (ETFs) and over-the-counter (OTC) markets may lay the groundwork for growth in gold investment this year. Although most of last year saw persistent opposition to U.S. interest-rate hikes and a stronger dollar, gold’s stable returns have rekindled investor interest. Demand for gold jewelry is also expected to rebound strongly, driven by China’s reopening. On the other hand, the World Gold Council anticipates that central banks’ gold reserves accumulation this year will fall short of 2022 levels, as demand remains difficult to predict—partly because policy-driven factors have yet to consistently respond to the most common economic drivers.