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Global gold demand at all-time high in 2023 backed by central bank purchases

The global demand for gold surged to an all-time high of 4,899 tonnes in 2023, up 3% as compared to the previous year, as over-the-counter purchases and buying by central banks remained robust.
Gold exchange-traded funds, though, saw investments being pulled out for the third year in a row with outflows more than doubling to 244 tonne in 2023 from nearly 110 ton in 2022, data from the World Gold Council showed.

The average prices of gold in 2023 was 8% higher on year at $1,940.54 per ounce, also an all-time high, the industry body said. Prices at the end of the year were at $2,078.4 per ounce, clocking in returns of 15% for the year.

“Ongoing conflicts, trade tensions and over 60 elections taking place around the world, are likely to encourage investors to turn to gold for its proven track-record as a safe haven asset,” senior markets analyst Louise Street said.

Central banks purchased 1,037 tonnes of gold in 2023, the second highest on record, down from 1,082 tonne in 2022, which was an all-time high.

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