MAS increases gold reserves by 4 tonnes in Q2

It was the sole central bank to register a gold reserve increase in the quarter.

The Monetary Authority of Singapore (MAS) increased its gold reserves by four tonnes (4t) in Q2 2024, becoming the only developed market central bank globally to report a gold reserve increase during the quarter.

The World Gold Council’s Q2 2024 Gold Demand Trends report stated that the Q2 addition increased MAS's total gold reserves to 241t.

Consumer demand for gold increased steadily in line with reserve growth.

In Q2, consumer demand reached 3.2t, up 8% YoY.

In the same period, bar and coin demand rose by 25% YoY to 1.6t. Jewellery consumption, however, fell by 5% YoY to 1.6t.

“Demand in Singapore reflects the general trend as many institutions recognize gold as a strategic asset to manage risk and diversify their portfolios in times of economic uncertainty and political upheaval,” said Shaokai Fan, the head of Asia-Pacific (ex-China) & global head of Central Banks at the World Gold Council. 

Globally, gold demand grew 4% YoY to 1,258t, supported by a 53% increase in over-the-counter (OTC) transactions to 329t.

The report also found that increased OTC demand and a slowdown in exchange-traded funds (ETF) outflows drove the record-high gold prices in Q2. 

The gold price averaged US$2,338/oz, 18% higher YoY,  reaching a record of US$2,427/oz during the quarter.

Global gold investment remained resilient, marginally higher YoY at 254t, concealing divergent demand trends. 

Meanwhile, bar and coin investment decreased 5% to 261t in Q2 due to a sharp decline in demand for gold coins. 

Total gold supply rose 4% YoY, with mine production increasing to 929t.