Mumbai: The World Gold Council report states that Demand to invest in gold bullion and retail coins As well as central bank purchases drove global demand for gold to rise 28 percent to 1,181.5 tons in the September quarter.
Overall global gold demand was 921.9 tons during the July-September 2021 quarter, the World Gold Council’s ‘Gold Demand Q3 2022 Outlook’ released on Tuesday.
Investments are down 47% year-on-year. As gold-backed Exchange Traded Fund (ETF) investors responded to a challenging combination of higher interest rates and a strong US dollar, the outflow of 227 tonnes was a massive outflow. The best since the second quarter of 2013
The report states that only 26 tonnes of ETFs flowed during the third quarter of 2021.
However, bullion and coin investment rose 36 percent year-on-year in the September quarter to 351.1 tonnes, compared with 258.9 tonnes last year.
The Bars and Coins sector was at its strongest in the third quarter since 2011, largely due to rising global inflation fueling most of the market demand. It was further driven by a weaker gold price in the July-September period, the report said.
The average price of gold fell 7.59% sequentially during the third quarter of 2022 to $1,728 an ounce, compared to $1,870 in the April-June period of this year, said Somasundaram PR, CEO of WGC India. with PTI
According to reports, in the September quarter Central bank purchases hit a record quarterly high of 399.3 tonnes, compared with 90.6 tonnes in the same period in 2021.
Turkey remains the largest reported gold buyer this year, adding 31 tonnes in the third quarter. followed by Uzbekistan buying 26 tonnes and Qatar 15 tonnes during the July-September period.
According to reports, the Reserve Bank of India (RBI) maintained its long-standing gold buying strategy in the third quarter, buying 13 tonnes in July and 4 tonnes in September. Increased gold reserves to 785 tons.
Gem consumption continues to recover. It has now returned to pre-epidemic levels, increasing by 10% to 523.1 tonnes, compared with 476.5 tonnes in the same period of 2021.
The report indicated that most of this growth was led by consumers in urban India, where demand rose 17% yoy to 146.2 tonnes.
in the same way So is the growth of Middle Eastern countries. Saudi Arabia’s jewelry consumption has increased 20 percent since the third quarter of 2021 and the United Arab Emirates has increased 30 percent during the same period.
meanwhile Chinese jewelry demand rose slightly 5% yoy, driven by better consumer confidence and lower domestic gold prices. As a result, some pent-up demand was released.
in the part of the material The report showed a 1% increase to 1,215.2 tonnes during the September quarter, compared with 1,208.2 tonnes in the same period last year.
Mining production is up 2% compared to the same period in 2021, with gold mining growing for the sixth straight quarter.
However, recycling fell 6% yoy in the September quarter to 275.8 tonnes, compared with 292.8 tonnes last year. As consumers hold onto their gold in the face of rising inflation and uncertain economic prospects.
“Even though the macro-economic situation is shaken, This year’s demand has reflected gold’s position as a safe haven. It highlights the fact that it will outperform most asset classes in 2022.
“Look forward We expect central bank buying and retail investment to remain strong. And that could help offset potential declines in OTC (Over The Counter) and ETF investments that could outperform if the dollar strengthens,” said WGC senior market analyst Louise Street.
The WGC also expects jewelry demand to remain strong in some regions such as India and Southeast Asia. she added