Global gold demand was steady in Q3 2018 at 964 tonnes (t), up just 6t year-on-year according to the World Gold Council’s latest Gold Demand Trends report. Robust central bank buying and a 13% rise in consumer demand offset large outflows in gold-backed exchange-traded funds (ETFs). Lower gold prices saw retail investors take refuge in bars and coins, while jewellery purchases increased in India, China and across South-East Asia.
Alistair Hewitt, Head of Market Intelligence at the World Gold Council, commented:
“The physical market responded quickly when the gold price breached US$1,200/oz in August, with retail investors around the world diving into the market. And there are welcome developments in the central bank space. They’re buying a lot and we are seeing new central banks enter the market as they look to hedge their dollar exposure.
“The equity sell-off last week is a timely reminder of the threats stalking markets: valuations are stretched, debt levels are high, and rising rates and quantitative tightening pose risks that an allocation to gold can help hedge.”
The total supply of gold decreased slightly in Q3 2018, down 2%, as de-hedging continued for a second consecutive quarter, and lower gold prices and economic improvement in the US and Europe discouraged recycling. In contrast, mine production in Q3 registered its sixth consecutive quarter of growth, up 2% to 875t and is the highest level of quarterly production in our records. A combination of growth from key producing countries, such as Russia and Canada, as well as the improving production pipeline will be supportive factors for further growth in 2018.
The key findings included in the Gold Demand Trends Q3 2018 report are as follows:
The Gold Demand Trends Q3 2018 report, which includes comprehensive data provided by Metals Focus, can be viewed at http://www.gold.org/research/gold-demand-trends and on our iOS and Android apps. Gold Demand Trends data can also be explored using our interactive charting tool http://www.gold.org/data/gold-supply-and-demand/gold-market-chart.
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For further information please contact:
Stephanie Mackrell
World Gold Council
T +44 207 826 4763
E [email protected]
Nicola Surgett
Edelman
T +44 203 047 2218
E [email protected]
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World Gold Council
The World Gold Council is the market development organisation for the gold industry. Our purpose is to stimulate and sustain demand for gold, provide industry leadership and be the global authority on the gold market.
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