Advertisement
trendingNowenglish1821211https://zeenews.india.com/business/bullion/bullion-news/global-gold-demand-rises-7-58-in-q3-to-1121-tonnes-wgc_1821211.html

Global gold demand rises 7.58% in Q3 to 1,121 tonnes: WGC

Global gold demand during the July-September period jumped by 7.58 percent to 1,121 tonnes due to softening of the prices, World Gold Council has said.

 

Mumbai: Global gold demand during the July-September period jumped by 7.58 percent to 1,121 tonnes due to softening of the prices, World Gold Council has said.

The total demand during the corresponding period last year stood at 1,041.9 tonnes.

Overall consumer demand, including jewellery, coin and bar demand, went up by 13.63 percent to 927.6 tonnes compared with 816.3 tonnes last year, Gold Demand Trends report of WGC said.

Global investment demand saw a significant rise of 27 percent to 230 tonnes from 181 tonnes a year ago.

This was led by the US, which saw a surge in bar and coin demand, up 207 percent at 33 tonnes from 11 tonnes last year, with support from China, up 70 percent at 52 tonnes and Europe up 35 percent at 61 tonnes.

The third quarter consisted of two distinct halves.

In the first part, factors, including ETF outflows, contributed to a price dip, which buoyed consumer demand around the world.

A shift in tactical investor positions in the latter part led to modest ETF inflows in August and September and helped to push prices back, it said.

Global jewellery demand for Q3 was up 6 percent year-on- year at 632 tonnes compared with 594 tonnes.

While in India, jewellery demand was up 15 percent at 211 tonnes and China was up 4 percent at 188 tonnes, the US and the Middle East saw marginal gains, up 2 percent at 26 tonnes and 8 percent at 56 tonnes, respectively, the report said.

Central banks demand reached 175 tonnes, the 19th consecutive quarter of net purchases.

Total supply was 1,100 tonnes in Q3, up 1 percent year-on-year.

Total mine supply (mine production and net producer hedging) remained relatively flat up 3 percent year-on-year at 848 tonnes compared from 814 tonnes.

Quarterly mine production shrank by 1 percent to 828 tonnes in Q3 as against 836 tonnes in third quarter last year.

Recycling levels were also down 6 percent year-on-year to 252 tonnes from 268 tonnes in Q3 last year.

"India and China remain the dominant figures in the global gold market, accounting for close to 45 percent of the total demand. But what was particularly noticeable this quarter is that the consumer response to the price dip was a truly global occurrence," WGC Head of Market Intelligence Alistair Hewitt said.

"There were significant gains in bar and coin demand in China and across Europe, but it was in the US, where we saw the most dramatic growth, with US Mint Eagle sales reaching their highest level since Q2 2010," he added.

Global jewellery demand also picked up, in what is traditionally a quiet time of the year, he said.

He further said, "Separately, purchases by the central banks almost equalled the Q3 2014 record as gold diversification benefits continued to be recognised. The increased transparency that comes from the publication of China's reserve data is a welcome addition to the market - although Russia still remains the most significant buyer".

"These factors combined, illustrate the diversity of gold demand and the broad range of factors that underpin it," he informed.

 

Stay informed on all the latest news, real-time breaking news updates, and follow all the important headlines in india news and world News on Zee News.

NEWS ON ONE CLICK