Gold demand hits pre-pandemic levels, increasing 28% in the third quarter despite dismal investor interest – World Gold Council

By Neils Christensen

Despite persistent bearish sentiment in future markets and outflows in exchange-traded products, there was still solid demand for physical gold in the third quarter, according to the latest research from the World Gold Council.

Monday, in its latest quarterly demand trend report, the WGC said that physical gold demand totaled 1,181 tonnes in the third quarter, increasing 28% from the third quarter last year. At the same time, year-to-date gold demand is up 18% compared to the first nine months of 2021.

Juan Carlos Artigas, global head of research at the World Gold Council, said in an interview with Kitco News that global gold consumption has returned to prep-pandemic levels, driven by an increase in jewelry, solid demand for bars and coins and consistent purchases from central banks.

The rise in physical demand comes as the investment market, driven by outflows in global gold-backed ETFs, dropped by 47% or 227 tonnes to 124 tonnes.

However, Artigas said that the latest report shows that the gold market is driven by more than just investment demand in paper futures and ETFs.

“Gold continues to prove itself as a global market,” he said. “You can’t use just one label to define the gold market. Gold’s diverse source of demand is why it should have a strategic place in an investor’s portfolio.”

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