Gold Demand Hits Record High in Third Quarter with Price Surging to New Heights
In the third quarter of this year, gold demand reached an all-time high, driving the price to a series of record highs. Including over-the-counter sales, gold demand hit 1,313 tons in Q3, marking a 5 percent increase compared to the previous year. The average gold price during this period was a record-breaking $2,474 per ounce, showing a significant 28 percent year-on-year increase.
The total value of third-quarter demand soared by 35 percent, surpassing $100 billion for the first time ever. The surge in ETF holdings played a key role in driving this demand, with gold-backed funds increasing their holdings by 95 tons. This positive growth in ETF investments was the first since the beginning of 2022.
Overall, total investment demand reached 364 tons in Q3, nearly doubling from the previous year. Despite a decline in bar and coin demand in certain regions, such as China and Turkey, Indian demand surged after the government slashed taxes on gold and silver imports.
Jewelry demand faced some challenges due to high gold prices, resulting in a 12 percent drop in volume. However, consumers spent more on gold jewelry, leading to a 13 percent increase in value. Central bank buying slightly slowed down, with 186 tons purchased in Q3.
Industrial applications of gold saw a 7 percent year-on-year growth, particularly in the electronics sector. Looking ahead, the World Gold Council projects that demand will remain strong, fueled by media attention on gold’s performance and geopolitical uncertainties.
In conclusion, the surge in gold demand and prices in the third quarter highlights the ongoing attractiveness of gold as an investment option. Investors should consider diversifying their portfolios with gold to hedge against economic uncertainties and take advantage of potential future gains.