Gold Demand Reaches Historic Highs in Third Quarter of 2024

Global gold demand hit a record high in Q3 2024, exceeding USD 100 billion. Investment surged, driven by Western interest in gold ETFs. Despite a decline in jewelry demand, total demand rose by 5%, supported by central bank purchases and technological advancements amid rising prices.

In a landmark development for the global gold market, demand for the precious metal soared to over USD 100 billion in the third quarter of 2024, according to the World Gold Council. The Gold Demand Trends report highlighted a 5% increase in overall demand compared to the previous year, reaching 1,313 tonnes. This surge was mainly attributed to increased investment in a record-high price environment.

Investment demand witnessed astonishing growth, more than doubling to 364 tonnes from the previous year. Western investors primarily fueled this increase through a renewed interest in gold exchange-traded funds (ETFs), which saw an addition of 95 tonnes globally. This marked the first positive quarter for global gold ETFs since early 2022. Despite a 9% drop in bar and coin demand, the annual figures remain robust at 859 tonnes, surpassing the 10-year average of 774 tonnes.

Central bank acquisitions showed a slight deceleration in the third quarter but remained robust at 186 tonnes. The year-to-date tally for central bank demand reached 694 tonnes, consistent with figures from the prior year. While average gold prices rose to US$2,474 per ounce, this trend dampened global jewelry demand, which saw a 12% decrease in volume, even though the monetary value of jewelry consumption increased by 13%. Technological demand also grew by 7% year-on-year, bolstered by advancements in the electronics sector amid the ongoing AI boom.

(With inputs from agencies.)