Global gold demand increased 5% year-on-year (YoY) to 1,313t (tonnes) in the third quarter (Q3), with total demand exceeding $100 billion for the first time on record, supported by strong investment in a record-high price environment.

This is according to the World Gold Council’s Q3 2024 Gold Demand Trends report.

Global investment demand more than doubled YoY to 364t, driven by a shift in demand for gold ETFs primarily from Western investors. Globally, gold ETFs added 95t, marking the first positive quarter since Q1’22. Bar and coin demand fell 9%, but the year-to-date total remains strong at 853t compared to the 10-year average of 774t.

Central bank buying slowed in Q3 though demand remained robust at 186t. Year-to-date central bank demand reached 694t, in line with the same period of 2022.

Gold prices

Gold prices continued to rise to record highs during the quarter reaching an average of $2,474/oz, hampering global demand for gold jewellery. Total jewellery consumption was down 12% year-on-year on a volume basis, but up 13% in value terms suggesting that consumers are comfortable spending more on lower quantities of gold products.

In addition, total demand for gold in technology grew 7% year-on-year, bolstered by growth from the electronics sector as the AI boom continues to support demand for gold.

Total gold supply increased 5% year-on-year, with a jump of 3% in mine production and an 11% rise in recycling.

Increased investment

Louise Street, Senior Markets Analyst at the World Gold Council, commented: “Q3 saw increased investment and over-the-counter activity prop up global gold demand and drive price performance. While the higher gold price dampened demand in the majority of consumer markets, the import duty cut in India kept jewellery and bar and coin demand remarkably high in a record-breaking price environment.

“A ‘FOMO factor’ amongst investors has been a key driver of increased demand this quarter. Investors have shown an appetite to buy into the price momentum, are encouraged by the prospect of future interest rate decreases, and are also considering gold’s role as a safe haven in the face of US political uncertainty and escalating conflicts in the Middle East.

“Looking ahead, the step-change in gold investment flows is a trend that is likely to continue, which could keep both demand and price levels elevated. On the other hand, we’ve seen over 30 record price highs in 2024, and that environment will continue to be challenging for consumers. However, the prospect of economic growth is another factor we will be watching that could tip the scales.”

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