Global gold demand steady in Q3

LONDON, Oct 30 (Reuters): Global gold demand excluding over-the-counter (OTC) trading was steady year-on-year at 1,176.5 metric tons in the third quarter as higher investment activity offset reduced jewellery consumption, the World Gold Council (WGC) said on Wednesday.

Spot gold prices are up 34 per cent so far this year, heading for the highest annual growth since 1979, due to uncertainty surrounding next week's US presidential election, lower interest rates, geopolitical risks and portfolio diversification. Gold hit a record of $2,771.61 per ounce on Tuesday.

"Resurgent professional flows combined with solid bar and coin investment will offset weaker consumer demand and slower central bank buying" for gold in 2024, the WGC, an industry body whose members are global gold miners, said in a quarterly report.

Total demand for gold, including opaque OTC trading, rose 5 per cent to 1,313 tons, a record for a third quarter, the WGC said. It estimates the OTC flows - investment from institutional, high-net-worth investors and family offices - at 136.5 tons in July-September, up 97 per cent.

Physically-backed gold exchange traded funds (ETFs) saw the first positive quarter since the first quarter of 2022 with inflows of 95 tons, while bar and coin investment fell 9 per cent.

On the supply side, mine production increased by 6 per cent to reach a third-quarter record, and recycling rose by 11 per cent.