The Value of Global Demand for Gold Exceeded 100 Billion USD for the First Time

According to the data of the World Gold Council (WGC), in the third quarter of 2024, the total demand for gold (including OTC investments) increased by 5% compared to the same period of the previous year and reached 1,313 tons. This strength was reflected in the price of gold, which reached new record highs this quarter. The value of the request increased by 35% year-on-year and exceeded 100 billion dollars for the first time.

Global gold ETF inflows (95 tonnes) were the main drivers; The third quarter of 2024 was the first quarter since the first quarter of 2022, and the third quarter of 2023 after a significant (-139 tons) outflow.

Investments and stronger bars in coins (269 tons) compared to the third quarter of 2023, decreased by 9%. The car part of the decline was recorded in two or three cities, offset by a very strong quarter in India.

Gold jewelry consumption (459 tonnes) fell 12% year-on-year despite strong growth in India. Even as consumers bought this, their spending on gold jewelry increased, with demand rising 13% to more than $36 billion.

Central bank purchases (186 million) slowed in the third quarter, but annual purchases in 2022 are fairly and broadly contained.

AI continued to use gold in technology (83 tons); It is up 7% annually, albeit from a low base, and the outlook is cautious.

LBMA’s gold price (PM) continued to break all-time highs in the third quarter in a row. During the quarter, the average price increased by 28% and reached a record level of USD 2,474 per ounce.

OTC investments almost doubled to 137tn in the year.

Total gold supply rose 5% year-on-year to a record 1,313 tonnes. The mine’s production rose 6% to another quarterly record, while annual production surpassed the previous high of 2018. Refined gold volume increased by 11% year-on-year.

Investment flows played an important role in the performance of gold in the third quarter. Beating interest rates, geopolitical uncertainty, portfolio diversification, and impulse buying were some of the key factors.

Full 2024 Forecast: Rising professional flows are weighing on solid coin investment combined with weak consumer demand and offsetting a slowdown in central bank buying.