Market Speaks: Gold demand hits record high in September quarter says WGC, mine output shows steady growth

 World Gold Council (WGC) stated in its latest Gold Demand Trends update that total global gold demand (including OTC investment and stock changes) grew 3% y/y to 1,313 tonnes (t), the highest quarterly total in WGC data series. It noted that value measure of demand jumped 44% y/y to a record of US$146 billion (bn) has well. Year-to-date demand is marginally higher at 3,717t, equating to US$384bn in value (+41% y/y).

 Investors remained firmly in the driving seat in Q3. Huge ETF buying (222t), accompanied by 316t bar and coin investment (+17% y/y) was instrumental to the rise in overall demand.

 Accelerating investment demand fuelled the stellar gold price rise during Q3. Ongoing geopolitical turbulence and US dollar weakness continued to drive safe-haven buying, with added impetus from FOMO-driven flows.

Central banks remained a firm pillar of demand for gold in Q3. They bought an estimated net 220t of gold in the quarter, 28% higher than Q2 and 6% above the five-year quarterly average.

 Record-high gold prices in Q3 resulted in a sharp y/y drop in gold jewellery consumption to 371t. This contrasts with a 13% y/y increase in value to US$41bn.

 Total gold supply rose 3% y/y to a quarterly record of 1,313t. Mine production, which typically sees seasonal growth in Q3, was up 2% y/y to 977t.

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