Citi analysts suggest that while physical gold demand likely softened in Q2 2024, it remains strong, potentially driving spot prices to a record $2,400-$2,600 per ounce in the year’s second half. Chinese non-monetary gold imports dropped to 137 tons per month in Q2 from 189 tons in Q1, but are projected to reach a record 1,750 tons for 2024. Official sector demand remains high, with central bank gold buying expected to hit a record 1,100 tons, possibly exceeding 1,250 tons. Gold ETF inflows are also set to rise as the Federal Reserve starts its rate-cutting cycle.
