Updated Oct 17, 2022 01:40

Gold Market in the United States

Market Overview
In , the U.S. gold market increased by % to $, rising for the third year in a row after four years of decline. Overall, consumption continues to indicate a remarkable increase. Gold consumption peaked in and is likely to see gradual growth in the near future.

In value terms, gold production contracted to $ in . Overall, production recorded a measured expansion. The most prominent rate of growth was recorded in 2016 with an increase of %. As a result, production reached the peak level of $. From 2017 to , production growth remained at a lower figure.

In , consumption of gold decreased by -% to tons for the first time since 2018, thus ending a three-year rising trend. Overall, consumption, however, recorded a buoyant increase. Over the period under review, consumption attained the peak volume at tons in , and then fell slightly in the following year.

The size of the gold market in the United States declined modestly to $ in , reducing by -% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Over the period under review, consumption, however, saw a buoyant increase. Over the period under review, the market reached the peak level at $ in , and then declined in the following year.

Market Forecast
The gold market is expected to start a downward consumption trend over the next eight years. The performance of the market is forecast to decrease slightly, with an anticipated CAGR of -% for the eight-year period from to , which is projected to depress the market volume to tons by the end of .

In value terms, the market is forecast to contract with an anticipated CAGR of -% for the period from to , which is projected to bring the market value to $ (in nominal prices) by the end of .

Market Structure
Affected by an intensive growth in domestic production, which will gradually displace imported products from the market, the share of imports decreased from % in 2007 to % in . The United States domestic supply is expected to continue its growth. Gold market in the United States consists almost entirely of imported products. In recent years, import price have increased sharply. Despite the hike in price, the United States relies completely on foreign supplies: the volume of domestic output remains insufficient to satiate market demand.

Trade Balance
The United States remains a net exporter of gold; in physical and value terms, exports consistently exceeded imports from 2007 to . In , there was a significant trade surplus of tons, which was equal to $. This tangible trade surplus reflects the fact that the market remains buoyed by domestic production, and the industry is highly incorporated into the global market, which is likely to continue in the medium term.