Europe has reported a dip in gold jewellery demand in Q2, as uncertainty in the UK continues to take its toll, reveals the World Gold Council.

For the second quarter of the year, demand edged down to 14.3t.

During the quarter, modest improvements in France and Germany failed to match losses in the UK and Italy, due to Brexit concerns and fragile consumer confidence respectively.


As a region, Europe accounts for just 3% of global jewellery demand.

On a global level, jewellery demand witnessed modest growth in Q2, up 2% to 531.7t.

Growth is attributed to a strong recovery in India’s jewellery, with a busy wedding season and healthy festival sales boosting demand, before the June price rise brought it to a virtual standstill.

The US also contributed to the rise, with experiencing its tenth consecutive quarter of growth.

The latest report from the World Gold Council states that gold demand on the whole jumped to a three year high during the first half of 2019. This was driven by central bank buying and ETF inflows.

Head of market intelligence at the World Gold Council, Alistair Hewitt, comments: “June was a big month for gold. The price broke out of a multi-year trading range to hit a six-and-a-half year high and gold-backed ETF assets-under-management grew by 15% – the largest monthly increase since 2012. While the Fed’s dovish turn was a key driver for this, it also builds on a strong H1 which saw gold demand hit a three-year high, underpinned by extremely strong central bank buying. But we also saw an uptick in sales at an individual level as investors took advantage of June’s price rally to lock-in profits; jewellery recycling and retail bar and coin liquidations both rose.

“As we head into H2, we believe the factors underpinning ETF inflows and central bank buying, including looser monetary policy and geopolitical uncertainty, will continue. Consumer demand, however, may be a bit soft as people adapt to the higher price level.”