LONDON, Nov 1 (Reuters) – Central banks purchased a document 399 tonnes of gold price round $20 billion within the third quarter of 2022, serving to to elevate world demand for the metallic, the World Gold Council (WGC) stated on Tuesday.
Demand for gold was additionally sturdy from jewellers and consumers of gold bars and cash, the WGC stated in its newest quarterly report, however change traded funds (ETFs) storing bullion for traders shrank.
Gold is often seen as a protected asset for occasions of uncertainty or turmoil, however many monetary traders offered shares in gold-backed ETFs as rates of interest rose and pushed up returns on different belongings.
Offloading of bullion by ETFs helped push gold costs down 8% within the third quarter, however this value fall helped stimulate demand for jewelry, the WGC stated.
In whole, the world’s gold demand amounted to 1,181 tonnes in July-September, up 28% from 922 in the identical interval in 2021, the WGC stated.
Demand within the yr to September had recovered to pre-pandemic ranges, it stated.
Shopping for by central banks within the third quarter far exceeded the earlier quarterly document in information stretching again to 2000 and took their purchases for the yr to September to 673 tonnes, greater than the full purchases in any full yr since 1967, in line with the WGC.
Amongst massive consumers had been the central banks of Turkey, Uzbekistan, Qatar and India, however the WGC stated a considerable quantity of gold was additionally purchased by central banks that didn’t publicly report their purchases.
It didn’t give any particulars on which international locations these may very well be, however banks that don’t repeatedly publish details about their gold stockpiles embody these of China and Russia.
Purchases of gold bars and cash additionally surged in Turkey to 46.8 tonnes within the quarter, up greater than 300% year-on-year, as folks purchased gold to defend themselves from rampant inflation.
“Wanting forward, we anticipate central financial institution shopping for and retail funding to stay sturdy,” stated WGC analyst Louise Avenue.
“We additionally anticipate to see jewelry demand proceed to carry out strongly in some areas akin to India and Southeast Asia,” she stated.
Following are numbers and comparisons.
GOLD DEMAND (tonnes)*
* Supply: World Gold Council, Gold Demand Tendencies Q3 2022
Reporting by Peter Hobson
Modifying by Mark Potter
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