Youssef Al Arabi (Abu Dhabi)
The UAE topped the countries of the Middle East region in the volume of gold sales during the past year, followed by the Kingdom of Saudi Arabia, the Arab Republic of Egypt, and Kuwait, in order, according to the “Gold Demand Trends” report issued by the World Gold Council. According to the data of the report, of which Al-Ittihad obtained a copy, the volume of gold sales in the country during the year 2022 grew by 33.1% to reach 55.4 tons, compared to 41.6 tons during the year 2021. And jewelry accounted for a share of 84.8% of the total volume of gold sales in the country during Last year, following it reached 46.9 tons compared to 33.8 tons during the corresponding period of the year 2021, recording a growth rate of regarding 38.75%.
Financial instruments and bullion
The share of financial instruments and bullion amounted to regarding 15.2% of the total gold sales in the country during the year 2022, with a sales volume of 8.4 tons, compared to 5.67.7 tons during the year 2021, with a growth rate of 9%.
And quarterly, the volume of gold sales in the United Arab Emirates grew by 4% to reach 12.6 tons during the last quarter of last year, compared to 12.1 tons during the corresponding period of 2021.
And jewelry acquired a share of 83.3% of total sales during the last quarter of last year, reaching 10.5 tons, compared to 10 tons during the corresponding period of the year 2021, with an annual growth of 5%. The share of financial instruments and bullion amounted to 16.7% of the total volume of gold sales in the UAE during the last quarter of last year, reaching 2.1 tons, which is the same amount recorded in the last quarter of 2021.
Central banks are increasing sales globally
And globally, the latest report on gold demand trends issued by the World Gold Council revealed that the annual demand for gold in 2022 increased by 18% year on year, reaching 4,741 tons, which is the highest annual total since 2011, and the demand for gold was driven by buying. continually driven by central banks and strong retail investment.
The annual central bank demand more than doubled to 1,136 tons in 2022, compared to 450 tons in 2021, and purchases in the fourth quarter of 2022 alone reached 417 tons, bringing the total for the second half of 2022 to more than 800 tons.
Investment demand increased in 2022 by 10% compared to 2021, and the increase came as a result of two factors: the noticeable slowdown in outflows from ETFs, and the strength of demand for gold bars and gold coins.
Gold bars and gold coins continued to win the approval of investors in many countries around the world, which helped offset weakness in China. The total investment in European gold bars and gold coins exceeded 300 tons for the year 2022, supported by consistently strong German demand. The Middle East also recorded significant growth, as it Annual demand increased by 42% year on year.
Oversupply
Demand for jewelry declined globally in 2022, down by 3% at 2,086 tons. This was largely driven by the marked decline in annual demand for Chinese jewelry, which fell by 15%, as consumer activity was curtailed due to the ongoing closures resulting from the pandemic. “Covid-19” for most of the year, and the rise in gold prices in the fourth quarter also contributed to the annual decline in demand for jewelry. Total annual supply in 2022 continued its slight upward trajectory, rising by 2% year-on-year to 4,755 tons, remaining above pre-pandemic levels. In particular, mine production increased to 3,612 tons, its highest level in four years.