The World Gold Council’s latest Gold Demand Trends report reveals a significant surge in global gold demand during the third quarter of 2024.
Total gold demand increased by 5 per cent year-on-year to 1,313 tonnes, marking a record for the third quarter.
For the first time in history, total demand exceeded US$100 billion, buoyed by strong investment in a record-high price environment.
Global investment demand more than doubled compared to the same period last year, reaching 364 tonnes.
This surge was primarily driven by Western investors shifting their focus towards gold ETFs.
The quarter saw a global addition of 95 tonnes to gold ETFs, marking the first positive quarter since Q1 2022.
While bar and coin demand experienced a 9 per cent decline, the year-to-date total remains robust at 859 tonnes, surpassing the 10-year average of 774 tonnes.
Central bank buying, though slower in Q3, remained strong at 186 tonnes.
Year-to-date central bank demand reached 694 tonnes, aligning with the same period in 2022.
The rising gold prices, which reached an average of US$2,474 per ounce during the quarter, impacted global jewellery demand.
Total jewellery consumption decreased by 12 per cent year-on-year in volume terms.
However, it increased by 13 per cent in value terms, suggesting consumers are willing to spend more on smaller quantities of gold products.
The technology sector saw a 7 per cent year-on-year growth in gold demand, bolstered by the electronics sector as the AI boom continues to drive demand.
On the supply side, total gold supply increased by 5 per cent year-on-year, with mine production jumping 6 per cent and recycling rising 11 per cent.
Louise Street, Senior Markets Analyst at the World Gold Council, attributed the increased demand to a “FOMO factor” among investors.
She noted that investors are buying into the price momentum, encouraged by potential future interest rate decreases and gold’s role as a safe haven amid political uncertainties.
John Reade, Market Strategist at the World Gold Council, commented on trends in Australia, highlighting an 8 per cent year-on-year rebound in bar and coin investment, offset by a 19 per cent fall in jewellery demand.
He also noted the growing traction of gold ETFs in Australia, with total ETF assets under management reaching a record US$3.6 billion.
As geopolitical uncertainties persist and policy rates ease, gold is expected to remain a favoured hedge against instability and a portfolio diversifier.
The World Gold Council anticipates that the step-change in gold investment flows is likely to continue, potentially keeping both demand and price levels elevated in the coming months.