Gold Demand on the Rise: 'Yellow Storm' Reaching Historic Heights

Third Quarter Report: Historical Record in Gold Demand

The latest report published by the World Gold Council (WGC) indicates that global gold demand reached 1,313 tons in the third quarter, marking a 3% increase year-on-year. This figure represents a historical peak, shaped by infrastructure needs as well as investment demands. The economic equivalent is estimated to be approximately 146 billion dollars.

Significant Increase in Investment Demand

Gold investment demand gained momentum in the third quarter, reaching 537 tons. Geopolitical uncertainties, rising inflation, and the weakening of the dollar increased investors' search for safe havens, elevating interest in gold. Central banks also became notably active during this period, purchasing a total of 220 tons of gold, reflecting a 28% increase compared to the second quarter and a 10% increase compared to the same period last year.

The Role of Central Banks

In the first nine months of the year, net gold purchases by central banks reached 634 tons. While this figure falls short of the extraordinarily high levels of the past three years, it presents a remarkably significant value compared to the pre-2022 period.

Decline in Jewelry Demand

On the other hand, global jewelry demand declined by 19% year-on-year in the third quarter. Gold supply also reached 1,313 tons with a 3% increase year-on-year, setting a new record on a quarterly basis.

Future Perspective: Expectations of Rising Gold Prices

WGC Senior Markets Specialist Louise Street expressed that the rise of gold ounce prices towards 4,000 dollars reflects the strong persistence of factors that increased gold demand throughout the year. Growing geopolitical tensions, stubborn inflationary pressures, and uncertainties in international trade policy are increasing the necessity for investors to protect their portfolios.

Street also notes that current conditions indicate the possibility of further upward movements in gold prices. Market research reveals that the saturation point has not yet been reached and that gold continues to maintain its value as a strategic asset.