Weekly Gold Review: COMEX futures hold above $4000 per ounce after rising from three-week low

COMEX Gold prices climbed above $4000 per ounce mark, coming off a three-week low and wrapping up October with a 3.60% monthly gain — its fourth consecutive monthly rise. The yellow metal found support from strong central bank purchases and easing trade tensions after the US and China agreed to a one-year truce on rare earths and critical minerals. However, upside momentum was capped by a stronger US dollar and fading hopes of further Fed rate cuts, after Chair Jerome Powell signaled caution on policy easing. According to the World Gold Council, central banks bought 220 tons of gold in Q3, up 28% from the previous quarter, led by Kazakhstan and Brazil’s first purchase in over four years. The metal is up around 60% this year.

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.
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.

MCX Gold futures ended around Rs 121300 per 10 grams, adding to recent losses though a renewed wave of selling in Indian Rupee capped losses.

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