Global Gold Demand Hit Record in the Third Quarter of 2023

Incredible Increase in Global Gold Demand

Global gold demand rose by 3% year-on-year in the third quarter of 2023, reaching 1,313 tons. This marks the highest level for the quarter. The World Gold Council (WGC) published its third-quarter report for this year, announcing that gold demand was valued at $146 billion.

Increase in Investment Demand

The growth is driven by strong investment demand. Throughout the third quarter, gold investment demand increased to 537 tons, drawing attention. Rising geopolitical uncertainties and a weakening US dollar were significant factors directing investors towards gold.

The Role of Central Banks

Central banks made a significant contribution by buying a total of 220 tons of net gold in the third quarter. This figure represents an increase of 28% compared to the previous quarter and a growth of 10% compared to the same period last year. In the first nine months of the year, net gold purchases by central banks amounted to 634 tons.

Decrease in Jewelry Demand

On the other hand, global jewelry demand saw a 19% decline in the third quarter.

Expectations of Upward Movement in Prices

WGC Senior Markets Specialist Louise Street noted that the rise in gold's ounce price has highlighted the strength of the factors driving demand. Rising geopolitical tensions, persistent inflation, and global trade uncertainties have accelerated investors' search for strengthening their portfolios.

According to Street's assessments, a weakening US dollar, falling interest rate expectations, and the threat of stagflation may increase buying demands. However, it was emphasized that the market has not yet reached saturation and that the strategic holding of gold is still seen as a strong reason.