2023-10-31 17:30:01
Gold demand around the world in the third quarter was around 6 percent below the same period last year. The industry organization World Gold Council (WGC) announced this in a report on Tuesday.
In the months of July, August and September, 1,147 tons of gold were demanded globally. Although this was more than the five-year average, it was still less than in the same period last year. However, if you include “over the counter” shops, there is an increase.
The price of gold has risen significantly due to the terrible events in Israel, recently reaching more than $2,000 per troy ounce (31.1 grams).
According to the World Gold Council, central banks bought 337 tons of gold in the third quarter. That was again quite a lot, but still less than in the extraordinary quarter of the previous year with 459 tonnes, as the council explains. The decline was 27 percent. Demand for gold for jewelry manufacturing fell from 525.7 to 516.2 tons.
Investor demand for bars and coins fell from 344.2 to 296.2 tons, i.e. by around 14 percent. However, there was higher demand for investment gold from India and China.
Gold exchange-traded funds (ETF) and similar investment products recorded significant outflows, amounting to 139.3 tonnes of gold, compared to 243.7 tonnes in the same period last year.
According to the Council, the main reason behind this is investor sentiment that interest rates will remain high, which is bad for interest-free gold.
Investors take profits
“European bullion and coin investment recorded its weakest quarter since before the 2008 global financial crisis,” the council continued. Net demand has fallen to just 30 tonnes. The net figure hides both a smaller number of gold purchases and a larger number of sales.
Investors took profits due to the high gold price. Germany, as a particularly important gold market in Europe, contributed significantly to this development: Net demand for gold bars and coins fell by 73 percent to 12 tons. The World Gold Council believes that the economic downturn, but also the uncertainty about the federal government’s heating policy, for example, has weighed on the mood and made investors more cautious when investing.
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However, other markets in Europe also recorded double-digit percentage declines in demand for investment gold in the third quarter. Demand for gold for technical applications in industry fell by 3 percent to 75.3 tons.
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