Business and Economy
Global gold demand hits record high of over $100B in Q3
Anadolu, Philippine News Agency
The World Gold Council said that central banks’ gold purchases slowed down in the third quarter but remained strong at 186 tons and the year-to-date central bank demand amounted to 694 tons. (File Photo: Jingming Pan/Unsplash)
ISTANBUL – Global gold demand rose 5 percent on an annual basis during the third quarter to a little over 1,300 tons, coming at over USD100 billion for the first time, the World Gold Council said on Wednesday.
While global demand this quarter saw a record third-quarter increase, global investment demand “more than doubled” to 364 tons due to a shift in demand by mostly Western investors for gold exchange-traded funds (ETFs).
A fear of missing out factor drove increased demand for the third quarter as investor appetite rose and investors sought the perceived haven of gold, while the uncertain atmosphere of US politics continued, with the presidential elections right around the corner and escalating geopolitical conflicts in the Middle East.
Gold ETFs worldwide contributed 95 tons to the investment demand, rising for the first time since the first quarter of 2022, while bar and coin demand fell 9 percent.
The World Gold Council said that central banks’ gold purchases slowed down in the third quarter but remained strong at 186 tons and the year-to-date central bank demand amounted to 694 tons.
Gold prices saw record highs in the third quarter at an average of USD2,474 per Troy ounce, which impeded gold jewelry demand worldwide, as total jewelry consumption volume fell 12 percent year-on-year, and a rise of 13 percent in value terms indicated comfortable spending for lower amounts of gold products.
Gold demand in technology climbed 7 percent on an annual basis due to progress in artificial intelligence (AI).
Meanwhile, the total gold supply climbed 5 percent compared to the same quarter last year with a 6 percent rise in mine production and 11 percent in recycling, the World Gold Council said.
(Anadolu)
