Gold market overview
Gold demand in 2015 was little changed from 2014 as measured by data published by the World Gold Council. While jewellery and technological demand showed declines of 3% and 5% respectively, investment demand growth was 8% and the official sector increased its purchases by 1%.
Gold supply was down 4% on a year earlier, primarily due to decreased contribution from recycling. The gold price closed the year at $1 062 per ounce, 11% down on a year earlier. The price reached a high of $1 302 in January 2015, but traded in the $1 100 to $1 200 range for most of the year.
Economic and political risks intensified in 2015 with the slow-down in the Chinese economy, plunging oil prices, collapse in commodities prices, escalating conflict across the Middle East and the increased threat of terrorism.
Against this background central banks continued to add to their gold reserves as they maintained a focus on risk management through a diversification of asset portfolios. According to the Word Gold Council’s statistics this resulted in the second highest official sector gold demand quantity on record. The most significant development during the year was the announcement by the Chinese Central Bank that it had accumulated more than 600 tonnes of gold during the preceding six years.
Source: SNL Metals and Mining