Gold demand from investors should remain healthy for the remainder of 2023 even though central bank buying declined in the last three months, according to the World Gold Council (WGC).
Central bank net buying slowed to 103 tonnes (t) in the second quarter or down 35% year on year from an extremely high base a year earlier.
Even so, central bank gold demand still saw its highest first half in World Gold Council records at 387t.
Investment demand in the second quarter rose by 20% to 256t, while jewellery consumption inched up 3% to 476t year on year.
Strength in China outweighed weakness in India with first-half demand flat at 951t.
For the full year, strong OTC demand is expected to make up for softness in ETFs and bar & coin.
A positive central bank trend is set to continue even with the second quarter dip and supply is set to increase with mine production at a record high, said the WGC.