Global Gold Demand Soars Amid Strong ETF Inflows in Q3
Healthy inflows into global gold exchange-traded funds (ETFs) significantly boosted gold demand in the third quarter, according to the World Gold Council.
Combined with ongoing investor interest in over-the-counter markets, these factors contributed to a series of record-high gold prices during the period.
While gold jewelry consumption declined due to rising prices, India experienced a notable rebound following a reduction in gold import duties.
Net demand from central banks slowed but remained robust, with official institutions purchasing a net total of 186 tonnes of gold in the quarter. Year-to-date purchases mirror those of 2022, totaling 694 tonnes.
Global gold ETF holdings increased by 95 tonnes, marking the first quarter of total net inflows since early 2022. However, demand for gold bars and coins dropped 9% year-on-year, with reduced demand in China, Türkiye, and the United States overshadowing significant buying activity in India.
The Council noted that jewelry consumers faced challenges due to record prices, leading to a 12% decline in global gold jewelry demand despite the surge in Indian purchases.
Total gold supply in the third quarter rose 5% year-on-year to a record 1,313 tonnes, driven by increased mine production and recycling efforts.
The Council’s prediction of renewed Western investment flows was realized during the quarter, further propelling gold prices upward.
As jewelry buying retreats due to high prices, bar and coin investment is expected to remain strong. Although central bank purchases have slowed, they are still on track for a robust year, with supply anticipated to reach record levels following substantial third-quarter mine production.
