Demand increases sharply, the world consumed more than 1,147 tons of gold in the third quarter

According to statistics from the World Gold Council (WGC), gold demand in the third quarter of 2023 was 8% higher than the 5-year average, but 6% lower than the same period last year, stopping at 1,147 tons.

Global gold reserves have increased by 337 tonnes in the third quarter of 2023, up 120% from the previous quarter. In the first three quarters of the year, central banks bought a net 800 tonnes of gold, up 14% from the same period last year.

Investment demand in the third quarter was 157 tonnes, up 56% year-on-year. This is below the five-year average of 315 tonnes. About 139 tonnes of precious metals were “flowed” out of global gold ETFs in the third quarter, much lower than in the third quarter of 2022.

Limited demand for consumer electronics reduced the volume of gold used in technology by about 3% year-on-year, to 75 tonnes.

Mine production hit a record 971 tonnes in the third quarter, pushing total gold supply to 1,267 tonnes, up 6% year-on-year.

According to the London Bullion Market (LBMA), the average gold price in the third quarter was $1,928.50 per ounce, down 2% from the second quarter and 12% higher than the same period last year. Several countries saw domestic gold prices rise as their currencies weakened against the US dollar, including Japan, China and Türkiye.

"Demand for gold bars in China and India is likely to continue to grow. Geopolitical uncertainty is driving safe-haven demand in China, while India's purchasing power is driven by economic wealth. These two factors help shape gold's long-term investment performance," the World Gold Council said.

Demand in Europe has yet to recover, although US gold prices attracted strong interest at the start of the fourth quarter. This could also lead to improved demand in Europe."

Gold demand has been steady this year amid high interest rates and a strong US dollar, and the precious metal could surprise with further gains as geopolitical tensions heat up and expectations of continued central bank buying continue, the organisation said.

As of 8:00 p.m. on October 31, the world gold price was trading around 1,996 USD/ounce. In the domestic afternoon, the price of SJC gold was currently at 70.10 - 70.82 million VND/tael (buy - sell). DOJI gold was priced at 70.05 - 70.80 million VND/tael (buy - sell).

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