High gold prices discouraged consumers from buying gold. As a result, global gold demand dropped, and it actually amounted to 993 tonnes in the third quarter of the year, 10% down.
In particular demand for jewelry amounted to 493 tonnes, bars and coins 190 tonnes, technology 82 tonnes, central banks 82 tonnes too, and ETPs 146 tonnes.
On the other hand, recycling grew by 10% as the higher price encouraged consumers to sell some of their existing gold holdings. Mine production was -0.5% as it continued to plateau.
Although there has been a 10% fall in demand, this highlights that price momentum is secondary to the strategic motives underpinning investment. Overall, we maintain a positive look on the sector, particularly given the fragile macroeconomic backdrop, such as negative interest rates and geopolitical risks.