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The World Gold Council (WGC) reported stable global gold demand in Q3 2024 at 1,176.5 metric tons, with investor demand offsetting lower jewellery consumption. Spot gold prices surged 34% year-to-date, driven by U.S. election uncertainty, lower interest rates, and geopolitical risks. While bar and coin investment fell, gold-backed ETFs saw positive inflows, marking their first rise since Q1 2022. Despite strong demand in India, global jewellery consumption declined 12%, and central banks cut their gold purchases by 49%. Overall, total gold demand, including over-the-counter (OTC) trades, increased by 5% to 1,313 tons, a Q3 record, with mine output and recycling both rising.

Key Highlights

* Global gold demand was steady in Q3 2024 despite weaker jewellery demand.

* Spot gold prices are up 34%, nearing record annual gains.

* Gold-backed ETFs recorded positive inflows, first since early 2022.

* Jewellery demand dropped 12%, with strong growth seen only in India.

* Central bank gold purchases declined 49%, while OTC demand rose sharply.

Gold continued to attract significant investment interest in the third quarter of 2024, balancing a sharp decline in jewellery demand. The World Gold Council (WGC) reported that global gold demand, excluding over-the-counter (OTC) trading, remained stable at 1,176.5 metric tons compared to last year. The strong performance came as spot gold prices surged 34% in 2024, driven by growing economic uncertainty due to the upcoming U.S. presidential election, lower interest rates, and geopolitical tensions. Prices reached a record high of $2,771.61 per ounce, highlighting investors’ pursuit of safe-haven assets.

The steady price momentum saw a shift in gold’s demand drivers. While professional flows and bar and coin investment increased, these gains were tempered by a 12% decline in global jewellery demand, which traditionally accounts for the largest portion of physical gold consumption. The reduction was partially offset by increased demand from India, one of the largest jewellery markets. Another significant change was seen among central banks, which cut their gold purchases by 49%, a departure from their strong buying trend in 2022-2023.

Meanwhile, total gold demand, including opaque OTC trading, hit a record 1,313 tons for the third quarter, with OTC flows alone surging 97% to 136.5 tons. Physically-backed gold exchange-traded funds (ETFs) posted their first positive quarter since early 2022 with inflows of 95 tons, showing renewed interest among institutional investors. On the supply side, mine production and recycling rose by 6% and 11%, respectively, adding to the total availability of gold in the market.

Finally

Gold’s rising investor interest and strong price performance offset weaker jewellery demand, central bank purchases, and highlight its role as a resilient asset amid uncertain market conditions.

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