Global Gold Demand Hits Record High in Q3 2024, Driven by Investment and Price Surge

Global Gold Demand Hits Record High in Q3 2024, Driven by Investment and Price Surge

Total global gold demand surged by five percent year-on-year to reach 1,313 tonnes in Q3 2024, marking a record for the quarter, according to the World Gold Council’s latest report. For the first time, total demand exceeded $100 billion, fueled by strong investment amidst record-high prices.

Investment demand more than doubled to 364 tonnes, primarily driven by Western investors’ interest in gold exchange-traded funds (ETFs), which added 95 tonnes—the first positive quarter since Q1 2022. Meanwhile, bar and coin demand fell by nine percent, although year-to-date totals remain strong at 853 tonnes, surpassing the 10-year average of 774 tonnes.

Central bank purchases slowed but remained robust at 186 tonnes in Q3, bringing year-to-date demand to 694 tonnes, consistent with 2022 figures.

Despite rising gold prices, which averaged $2,474 per ounce during the quarter, jewellery consumption declined by 12 percent in volume. However, its value increased by 13 percent, indicating consumers are willing to spend more on smaller quantities of gold.

Additionally, gold demand in technology grew by seven percent, bolstered by the electronics sector’s growth, particularly in the AI boom.

Total gold supply also rose by five percent, with a three percent increase in mine production and an 11 percent rise in recycling.

Louise Street, Senior Markets Analyst at the World Gold Council, noted that increased investment and market activity have propelled demand and prices. She emphasized that while higher prices have dampened consumer demand in many markets, a cut in import duties in India helped maintain jewellery and bar demand.

Looking ahead, the shift in gold investment flows is expected to persist, potentially sustaining both demand and price levels. However, the record-high prices pose challenges for consumers, and future economic growth will be a key factor to monitor.

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