Third-quarter global gold demand was 8% higher than its five-year average

Because of the strong demand from central banks, the total yearly gold supply reached 1,147 tons in July through September.

The World Gold Council said on Tuesday that central bank purchases of gold continued at a historic rate in the third quarter of 2023, with global demand for the metal rising 8% over its five-year average.

However, according to a Gold Demand Trends analysis, the amount decreased 6% year over year to 1,147 tons in July–September.

Third-strongest quarter for net gold purchases by central banks, totaling 337 tons. With a 14% increase over the previous year, this drove the year-to-date demand to a record high of 800 tons.

To reach 157 tons in the three months leading up to September, investment demand increased by 56% over the same period last year.

Due to a steep reduction in demand in Europe, bar and coin investment fell 14% to 296 tons.

Due in large part to investor expectations that interest rates will remain high, gold exchange-traded fund (ETF) withdrawals decreased to 139 tons in the third quarter of this year from 244 tons the previous year.

The demand for jewelry decreased by 2% annually to 516 tons as the price of gold continued to rise.

In the third quarter, the world’s total gold supply increased by 6% yearly to 1,267 tons, while mine production hit a record 2,744 tons for the year.