The World Gold Council said that the demand for gold increased by 18 percent in 2022 to 4,741 tons, amid increased demand for safe havens due to the repercussions of the Russian-Ukrainian war.
The Gold Council added in its annual report, Tuesday, that last year witnessed the strongest year for gold demand in more than a decade, or about 11 years, with the support of huge central bank purchases to enhance their cash reserves.
According to the report, this improvement came along with active buying by retail investors and slowing outflows from ETFs.
Central bank purchases increased by 152 percent to 1,135 tons last year, compared to 450.1 tons in the previous year.
On the other hand, jewelry consumption decreased by 2 percent in 2022 to 2,189 tons, while the technology sector’s demand for gold decreased by 7 percent, to 308.5 tons.
Global demand for gold bars and coins increased by 2 percent to 1,217 tons.
While holdings of gold ETFs decreased by 110 tons, this is less than 189 tons in 2021.
The total annual supply of gold increased by 2 percent in 2022 to 4,755 tons.
Mine production rose to a four-year high of 3,612 tons.
The unprecedented repercussions of the Russian-Ukrainian war that broke out in February 2022 reinforced the demand for safe havens for investment amid widespread economic turmoil and fluctuations in the prices of national currencies around the world.