Global Gold Demand Surges in Q3 2024
In the third quarter of 2024, global gold demand reached an all-time high of over USD 100 billion, according to the World Gold Council. The Q3 2024 Gold Demand Trends report highlights a 5% year-on-year increase in total gold demand, amounting to 1,313 tonnes. This growth was driven by strong investment in a high-price environment.
Investment Demand and ETFs
Investment demand for gold more than doubled from the previous year, reaching 364 tonnes. This surge was largely due to increased interest in gold exchange-traded funds (ETFs) among Western investors, with global gold ETFs adding 95 tonnes, marking the first positive quarter since Q1 2022.
Bar, Coin, and Central Bank Demand
Despite a 9% decline in bar and coin demand, the year-to-date total remains robust at 859 tonnes, surpassing the 10-year average of 774 tonnes. Central bank purchases slowed in Q3 but remained strong, with demand totaling 186 tonnes. Year-to-date central bank demand reached 694 tonnes, consistent with the same period in 2022.
Gold Prices and Jewelry Demand
Gold prices averaged US$2,474 per ounce during the quarter, which reduced global demand for gold jewelry by 12% in volume. However, the value of jewelry consumption rose by 13%, indicating consumers’ willingness to pay more for smaller quantities of gold.
Technological Demand and Supply
Technological demand for gold increased by 7% year-on-year, supported by advancements in the electronics sector amid the AI boom. The total supply of gold rose by 5% compared to the previous year, driven by a 6% increase in mine production and an 11% rise in recycling efforts.
Expert Insights
Louise Street, Senior Markets Analyst at the World Gold Council, noted, “Q3 saw increased investment and over-the-counter activity prop up global gold demand and drive price performance.” He also mentioned that while higher gold prices dampened demand in most consumer markets, the import duty cut in India kept jewelry and bar and coin demand high.
Doubts Revealed
Q3 2024 -: Q3 2024 refers to the third quarter of the year 2024, which includes the months of July, August, and September.
World Gold Council -: The World Gold Council is an organization that works to promote the use of gold and provides information about the gold market. It is like a group that helps people understand how gold is used and traded around the world.
Gold ETFs -: Gold ETFs are like special types of investments where people can buy shares that represent a certain amount of gold. It’s a way for people to invest in gold without actually having to keep the physical gold with them.
Central bank purchases -: Central bank purchases refer to when a country’s main bank, like the Reserve Bank of India, buys gold to keep as part of its reserves. This is done to help stabilize the country’s economy and currency.
US$2,474 per ounce -: US$2,474 per ounce means that one ounce of gold costs 2,474 US dollars. An ounce is a unit of weight used to measure gold, and US dollars are the currency of the United States.
Technological demand -: Technological demand refers to the use of gold in making electronic devices and other technology products. Gold is used in gadgets like smartphones and computers because it is a good conductor of electricity.
