According to a report released by World Gold Council on January 31st, the gold demand not including OTC trading reached 4,448 tonnes in 2023, a decrease of 5% compared to 2022. However, including other demands such as 398 tonnes of OTC trading, the total global gold demand in 2023 reached a new historical high of 4,899 tonnes.

Investment demand - Global gold ETF outflows for the third consecutive year, with a total outflow of 244 tonnes in 2023. At the end of 2023, the total holding of gold ETFs in the Chinese market reached 61.5 tonnes, and the total asset management scale (AUM) reached RMB 29 billion, a historical high. The supply and demand of gold bars and coins in major markets in the East and the West fluctuate, resulting in a slight shrinkage in the demand for gold bars and coins, with a year-on-year decrease of 3%. However, the total demand for gold bars and coins in China was 280 tonnes in 2023, an increase of 28% year-on-year, which was 6% higher than the ten-year average and stabilized the global demand for gold bars and coins.

Gold jewelry - Against the backdrop of high gold prices, global gold jewelry consumption remained stable at 2,093 tonnes in 2023. The recovery of China injected strong power into the growth of global gold jewelry demand. In 2023, the total demand for gold jewelry in China reached 630 tonnes, a year-on-year increase of 10%. In 2023, the sales of gold jewelry and other jewelry in China (with gold jewelry accounting for the majority) increased by 13% year-on-year, exceeding other retail categories. The demand for wedding and bridal gold jewelry also improved, providing additional impetus. Due to the skyrocketing price of gold in renminbi, the domestic gold jewelry consumption in 2023 reached RMB 282 billion, a historical high.

Central bank demand - Central banks in various economies around the world continued to purchase gold on a large scale, with a net purchase volume of 1,037 tonnes for the whole year, a decrease of 45 tonnes from the historical high in 2022. Since November 2022, the People's Bank of China has increased its gold reserves continuously. In the fourth quarter of 2023, the central bank increased its gold reserves by 44 tonnes, pushing the total annual gold purchase volume to 225 tonnes. As of 2023, China's official gold reserves have reached 2,235 tonnes, accounting for 4.3% of the total reserve assets. In the past 14 months, China's official gold reserves have accumulated by 287 tonnes.