According to the World Gold Council (WGC), global gold demand fell 7% during the July-September quarter to 831 tonnes compared to the same period in 2020, mainly due to outflows from gold-backed exchange-traded funds (Gold ETFs). Is. report good.
Total demand during the third quarter of 2020 stood at 894.4 tonnes, WGC’s Q3 Gold Demand Trends 2021 report said on October 28.
Pure gold ETF sales were relatively low (27 tonnes), but when compared to 274 tonnes during the pandemic-induced buying growth a year earlier, despite rising demand, it showed a year-on-year decline in overall gold demand. enough to keep. In all other areas, reports were observed.
The WGC regional CEO said, “ETF outflows were primarily negative for the US, while it did well in Europe and Asia. The decline was mainly due to ‘risk on attitude among US investors, decline in gold price,’ The strong US dollar” among others. India, Somasundaram PR told PTI.
Gold averaged $1,790 an ounce in the third quarter this year, down 6% year-on-year.
“The relatively modest outflows from Gold ETFs have had a disproportionate impact on this year’s figures, which outweighed the positives almost everywhere across the board. The outflows themselves are part of a bigger picture.
“A year ago, investors were flocking to gold in search of a hedge against the pandemic. And gold ETFs were particular beneficiaries of these inflows, adding more than 1,000 tonnes in the first three quarters of 2020,” said Lewis Street, senior market analyst at WGC.
He said this year there has been a sell-off by gold ETF investors, but the outflow has been modest in comparison.
Meanwhile, bars and coins (physical gold products purchased by retail investors) saw a 18% increase for the fifth consecutive quarter year-on-year, with 262 tonnes purchased in July-September 2021, the highest in 2020. 221 tonnes as compared to the same period. , it said.
The report further revealed that there was a healthy growth in consumer demand across all markers during the July-September quarter.
Gold jewelery demand grew 33% year-on-year to 443 tonnes during the third quarter as compared to 333 tonnes in the same period of 2020.
Gold used in technology grew 9% YoY to 83.8 tonnes as compared to 77.2 tonnes during the third quarter of 2020, the report said.
According to the report, central banks added 69 tonnes to their reserves against sales of 10 tonnes in the same period last year.
In addition, the WGC report said that despite the highest quarterly increase in mine production, total supplies were down 3% at 1,239 tonnes compared to 1,279.4 tonnes last year.
The year-on-year decline was due to a sharp decline in recycling in response to low gold prices, the report said.
“The rest of the gold market is seeing positive news – not least strong growth in demand for jewelery and technology, particularly pleasant as they are at least partly a result of the overall global economic recovery,” Ms Street said. , noting that central banks remain net buyers and bar and coin investment is rising.
“Looking forward, we expect the full-year picture for gold demand to look very similar, strong consumer and central banks will moderate losses from ETFs. Jewelery demand will remain higher than last year’s level, but despite good bars and coin demand, overall investment demand will weaken in 2021.
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