Gold: world gold demand reaches 964 tons in September

Kolkata: World demand for gold remained stable at 964 tons in September, up 6 tons year-on-year, according to the World Gold Council's latest report on gold demand trends.

Strong central bank purchases and a 13% surge in consumer demand offset the large outflows of gold-backed exchange-traded funds (ETFs). Lower gold prices have seen retail investors take refuge in bars and rooms, while jewelry purchases have increased in India, China and Southeast Asia.

Investors in the bar and parts sectors benefit from lower prices, with demand rising 28% year-on-year. Stock market volatility and weak currencies boosted demand in many emerging markets. China, the world's largest market for bars and coins, saw demand grow 25 percent to 86 tons. Iran's demand has reached a record level of 21 tons in five and a half years.

In the third quarter, jewelery demand grew price-driven growth of 6%. Falling gold prices in July and August encouraged price – sensitive buyers to look for bargains. Growth in India and China, up 10% in each region, outpaced the weakness in the Middle East, down 12%.

Central bank gold reserves rose 148 tonnes in the third quarter, up 22%. This is the highest level of net purchases since 2015, both quarterly and cumulatively. The quarter was particularly marked by the increased number of buyers.

The demand for gold in technological applications has increased by 1%, reaching 85 tons. This is the eighth consecutive quarter of growth, driven mainly by the use of gold in electronics, such as smartphones, servers and the automotive industry. ETF exits reached 103 tons, the first quarter since the fourth quarter of fiscal year 2016. North America accounted for 73% of exits, fueled by the feeling of risk, the strong dollar and price dynamics.

Alistair Hewitt, Head of Market Information at the World Gold Council, said, "The physical market reacted quickly when the price of gold reached $ 1,200 / ounce in August, retail investors around the world have plunged into the market. And there are encouraging developments in the central bank space. They buy a lot and we see new central banks entering the market as they seek to hedge their exposure to the dollar. The sale of shares last week is a timely reminder of the threats to the markets: valuations are tense, debt levels are high, interest rate hikes and quantitative tightening pose risks. A gold allowance can help protect. "

Total gold supply edged down in the 3rd quarter, down 2%, with deleveraging continuing for a second straight quarter, lower gold prices and higher prices. Improving the economic situation in the United States and Europe discouraging recycling. On the other hand, mining production in the third quarter posted its sixth consecutive quarter of growth, up 2% to 875 tonnes. This is the highest quarterly production level of our records. A combination of the growth of the major producing countries, such as Russia and Canada, as well as the improvement of the production chain will be factors favorable to the continued growth in 2018.