Record central financial institution shopping for lifts world gold demand, WGC says

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2 years ago

Central banks purchased a document 399 tonnes of gold value round $20 billion within the third quarter of 2022, serving to to raise world demand for the steel, the World Gold Council (WGC) mentioned on Tuesday.

Demand for gold was additionally robust from jewellers and patrons of gold bars and cash, the WGC mentioned in its newest quarterly report, however trade traded funds (ETFs) storing bullion for traders shrank.

Gold is usually seen as a protected asset for instances of uncertainty or turmoil, however many monetary traders offered shares in gold-backed ETFs as rates of interest rose and pushed up returns on different property.

Offloading of bullion by ETFs helped push gold costs down 8% within the third quarter, however this worth fall helped stimulate demand for jewelry, the WGC mentioned.

In complete, the world’s gold demand amounted to 1,181 tonnes in July-September, up 28% from 922 in the identical interval in 2021, the WGC mentioned.

Demand within the yr to September had recovered to pre-pandemic ranges, it mentioned.

Buying by central banks within the third quarter took their purchases for the yr to September to 673 tonnes, greater than the entire purchases in any full yr since 1967, in accordance with the WGC.

Among massive patrons had been the central banks of Turkey, Uzbekistan, Qatar and India.

Purchases of gold bars and cash additionally surged in Turkey to 46.8 tonnes within the quarter, up greater than 300% year-on-year, as folks purchased gold to protect themselves from rampant inflation.

“Looking ahead, we anticipate central bank buying and retail investment to remain strong,” mentioned WGC analyst Louise Street.

“We also expect to see jewellery demand continue to perform strongly in some regions such as India and Southeast Asia,” she mentioned.

Following are numbers and comparisons.

GOLD DEMAND (tonnes)*

Q3 2022
Q3 2021
% change
SUPPLY

Mine manufacturing
949.4
927.7
2
Net producer hedging
-10
-12.4
-19
Recycled gold
275.8
292.8
-6
Total provide
1215.2
1208.1
1

DEMAND

Jewellery fabrication
581.7
515.1
13
Technology
76.7
83.4
-8
– of which electronics
62.8
69
-9
– different Industrial
11.3
11.6
-3
– dentistry
2.5
2.8
-11
Investment
123.8
232.8
-47
– Of which bar and coin
351.1
258.9
36
– – Of which bars
220.4
177.5
24
– – official Coins
100.2
57.5
74
– – medals/imitation cash
30.6
23.9
28
– ETFs & related merchandise
-227.3
-26
774
Central banks & different inst.
399.3
90.6
341