GOLD DEMAND exceeded US$100 billion in value during the third quarter for the first time, as stronger investment combined with record prices.
In its report released yesterday, the World Gold Council said total demand, including over-the-counter investment, increased 5% year-on-year to approximately 1,313 tonnes.
The value of demand rose 35%, reflecting both higher volumes and a substantially higher gold price.
Gold-backed exchange-traded funds added approximately 95 tonnes, recording their first positive quarter since the opening quarter of 2022.
Global investment demand more than doubled year-on-year to approximately 364 tonnes. However, bar and coin purchases declined 9% to around 269 tonnes, showing that investment trends differed across products.
Central bank purchases totalled approximately 186 tonnes during the quarter, taking buying for the first nine months of the year to 694 tonnes.
Higher prices weighed on jewellery consumption, which declined 12% year-on-year to approximately 459 tonnes. Nevertheless, the value of jewellery demand increased 13%, indicating that consumers spent more while purchasing smaller quantities.
The Council’s quarterly analysis reported an average LBMA afternoon gold price of approximately US$2,474 per ounce, 28% higher than a year earlier.
Total supply increased 5%, supported by growth in mine production and recycling.
The figures illustrate a market in which investment strengthened while consumers adjusted to higher prices. Falling interest rates, geopolitical uncertainty, diversification and momentum buying were among the influences identified by the Council.
Disclaimer
This publication is for educational purposes only and does not constitute financial advice. It does not take into account any person’s investment objectives, financial situation or needs. Before making an investment decision, consider whether the information is appropriate to your circumstances and seek advice from a licensed financial adviser where necessary. Past performance is not a reliable indicator of future performance.