By Polina Devitt
       LONDON, Jan 31 (Reuters) - Global gold demand excluding
over-the-counter (OTC) trading fell by 5% from to 4,448.4 metric
tons in 2023 but remained strong compared with a 10-year average
due to geopolitical and economic uncertainty, the World Gold
Council (WGC) said on Wednesday.
    Ongoing conflicts, trade tensions and over 60 elections
taking place around the world are likely to support demand this
year and compensate for a potential hit to jewellery purchases
amid high prices and economic slowdown, it added.
    Including demand from the OTC markets and other
sources, total demand climbed by 3% to a new annual record at
4,898.8 tonnes and supported the growth of the 2023 average gold
price to a record high of $1,940.54, the WGC said in its
quarterly demand trends report.    
    Gold prices hit a record $2,135.4 per troy ounce in
December and have held above the $2,000 psychological level so
far this year. The latest Reuters poll expected the precious
metal to average $2,053.5 an ounce in 2024.
    As the central bank buying streak continued on from 2022 "at
a blistering rate," demand from this sector reached 1,037.4
tonnes in 2023, down 4% from the 2022 record year, the WGC said
in its report.
    "Even though it is not so strong as it was in 2022, it is
substantially higher than prior to 2022 and it exceeded our
expectations," said John Reade, market strategist at the WGC.
"It is a very impressive number."
    Purchases from central banks are expected to slow down by
around 200 tonnes in 2024 but remain higher than prior to 2022,
Reade said, adding that it was a conservative scenario, and that
demand could speed up.    
    In 2023, jewellery consumption was steady at 2,092.6 tonnes
due to 17% post-COVID increase in demand in China and despite
high gold prices, the WGC said.
    Buying of gold bars and coins fell by 3% as European demand
continued to plummet, while outflows from exchange traded funds
(ETFs) storing bullion for investors continued for the third
consecutive year with 244.4 tonnes of decline, it added.
    Gold supply and demand by WGC*:    
                  2023      2022    %   Q4 2023   Q4 2022   % Q4
                                   23                        y/y
                                   vs                      
                                   22                      
                                                                
 SUPPLY                                                    
                                                           
 Mine         3,644.40  3,624.80    1     930.8     946.7     -2
 production                                                
 Net                17     -13.1          -22.3     -13.6       
 producer                                                  
 hedging                                                   
 Recycled     1,237.30  1,140.10    9     312.9     290.7      8
 gold                                                      
 Total        4,898.80  4,751.90    3  1,221.40  1,223.80      0
 supply                                                    
                                                                
                                                                
 DEMAND                                                    
                                                           
 Jewellery    2,168.00  2,195.40   -1     581.5     601.9     -3
 fabrication                                               
 Jewellery    2,092.60  2,088.90    0     621.6     627.9     -1
 consumption                                               
 Jewellery        75.4     106.5  -29       -40     -26.1      -
 inventory                                                 
 Technology      297.8     308.7   -4      80.6      72.1     12
 Electronics     241.3       252   -4      65.9      57.9     14
 Other            47.1      46.5    1      12.3      11.7      5
 industrial                                                
 Dentistry         9.5      10.3   -8       2.4       2.4       
 Investment      945.1  1,113.00  -15     258.3     247.4      4
 Total bar    1,189.50  1,222.60   -3     313.8     336.6     -7
 and coin                                                  
 Bars            775.9     802.7   -3     221.1     222.2      0
 Official        297.1     320.9   -7      60.3      85.5    -30
 coins                                                     
 Medals/Imit     116.5      98.9   18      32.4      28.9     12
 ation coins                                               
 ETFs &         -244.4    -109.5    -     -55.6     -89.2      -
 similar                                                   
 products                                                  
 Central      1,037.40  1,081.90   -4     229.4     382.1    -40
 banks &                                                   
 other inst.                                               
                                       1,149.80  1,303.40    -12
 Gold demand                                               
              4,448.40  4,699.00                           
                                   -5                      
                                                           
                                                           
                                                           
 OTC and         450.4      52.8  753      71.5     -79.7      -
 other                                                     
                                       1,221.40  1,223.80      0
 Total                                                     
 demand       4,898.80  4,751.90                           
                                    3                      
                                                           
                                                           
                                                           
 LBMA gold    1,940.54  1,800.09    8  1,971.50  1,725.90     14
 price                                                     
 ($/oz)                                                    
    * Source: World Gold Council, Metals Focus, ICE Benchmark
Administration.

    
 (Reporting by Polina Devitt; editing by Aurora Ellis)