Record Gold Demand Soars Amidst Price Surge

Global gold demand increased by 5% to 1,313 tonnes in July-September 2024, marking the highest third-quarter demand ever. Investment demand rose sharply, driven primarily by Western investors' interest in gold ETFs. Despite high prices, the future trend in gold investments looks optimistic amidst economic uncertainties.

The World Gold Council reported a significant rise in global gold demand, which grew 5% in the third quarter of 2024, amounting to 1,313 tonnes, the highest level in a third quarter historically. This surge was fueled by robust investment activity amid record-high gold prices.

Investment in gold more than doubled year-on-year to 364 tonnes, largely due to increased interest in gold ETFs from Western investors. This marks the first positive quarter for gold ETFs since 2022. However, bar and coin demand saw a 9% decline, with the year-to-date total still strong at 859 tonnes, exceeding the 10-year average.

Central banks' gold buying dropped by 49%, attributed to the steep gold price rise. Notably, the National Bank of Poland emerged as the top buyer. The high prices also dampened global gold jewelry demand, which declined 12% in volume but increased 13% in value, reflecting consumer willingness to invest in premium-priced gold products despite potentially adverse market conditions.

(With inputs from agencies.)