World Gold Council reports record gold demand driven by geopolitical unrest and central bank buying, with prices reaching all-time highs
LONDON: Global gold demand reached unprecedented levels during the third quarter as prices soared to record highs amid geopolitical uncertainty.
Total gold consumption increased by 3% year-on-year to 1,313 tonnes between July and September according to World Gold Council data released Thursday.
This represents the highest quarterly demand volume since the organisation began compiling records approximately 25 years ago.
The precious metal benefited from its status as a safe-haven investment during the Russia-Ukraine war and Israel-Gaza conflict.
WGC analyst Louise Street told AFP that various regional conflicts and trade tensions created an atmosphere of heightened uncertainty that boosted gold demand.
Central bank purchasing contributed significantly to the buying surge that drove gold prices to repeated records throughout the year.
Gold subsequently retreated from its October peak of $4,381.52 per ounce as investors took profits.
The value of gold demand jumped 44% year-on-year to a record $146 billion in the third quarter according to the WGC report.
Analysts noted that the US government shutdown and anticipated Federal Reserve rate cuts provided additional support for gold prices in recent months.
Exchange-traded funds experienced strong demand as they enabled gold investment without direct futures market participation.
Jewellery demand declined by 23% to 419.2 tonnes during the quarter due to the high-price environment.
This represents the lowest third-quarter jewellery demand since 2020 when COVID-19 pandemic restrictions affected global markets.
Street described gold’s recent correction to approximately $4,000 per ounce as a healthy development that reduced speculative market positioning. – AFP
