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Global demand for gold has returned to pre-pandemic levels, driven by stronger central bank buying and demand from consumers, and is likely to be up for the rest of the year, according to the World Gold Council.
Gold demand in the September quarter was 28% higher year-on-year (YoY) at 1,181 tonnes, and on a year-to-date basis, demand increased 18% YoY, the trade body said in its latest report.
Global jewellery consumption reached 523 tonnes, increasing 10% YoY despite the deteriorating global economic backdrop. Y-t-d demand was 1,454 tonnes. The increase was due to a pullback in the gold price during the quarter, as well as a strong recovery in urban Indian demand with 17% YoY growth in demand to 146 tonnes.
"Jewellery demand has been surprisingly resilient in the first three quarters of the year. This prompts us to revise up expectations in Q4 vs our previous estimate," the report said.
Central banks also continued to buy gold in Q3, with purchases estimated at a quarterly record of nearly 400 tonnes; up 300% y-o-y. Central Bank of Turkey remained the largest reported gold buyer this year, adding 31 tonnes in Q3. Its gold reserves is now at 489 tonnes and year-to-date it has added 95 tonnes.
The Central Bank of Uzbekistan bought another 26 tonnes in Q3, while the Qatar Central Bank was also a significant buyer in Q3, having bought 15 tonnes.
The Reserve Bank of India also bought 13 tonnes in July and 4 tonnes in September, pushing its gold reserves to 785 tonnes.
"Consistent reported purchases are expected to continue but perhaps at a lower pace in Q4. We can’t rule out further unreported buying so have revised our forecast higher for FY 2022," said WGC.
An 8% YoY fall in technology demand reflected a fall in consumer demand for electronics due to the global economic downturn.
(Reporting by Brinda Darasha; editing by Seban Scaria)
