মঙ্গলবার, ২৫ জুন ২০২৪, ১১:০৭ পূর্বাহ্ন




Gold demand increases globally in Q3 by 28%

Gold demand increases globally in Q3 by 28%

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  • প্রকাশের সময় : সোমবার, ৭ নভেম্বর, ২০২২ ২:২৩ pm
গহনা অলঙ্কার দুল চুড়ি হাড় সীতা পায়েল নূপুর অলংকার গয়না জুয়েলারি jewellery gold coin স্বর্ণ মুদ্রা সোনা
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The World Gold Council’s latest Gold Demand Trends report reveals that gold demand (excluding OTC) in the third quarter (July-September) of 2022 hit 1,181 tonnes, up 28 per cent year-on-year.

The strong demand pushed the year-to-date total to its pre-Covid levels. The gold demand was bolstered by consumers and central banks, although there was a notable contraction in investment demand, according to the report.

It said that investment was down 47 per cent year-on-year, as ETF investors responded to a challenging combination of markedly higher interest rates and a strong US dollar with significant outflows of 227 tonnes. The movements, alongside weakness in OTC demand and negative sentiment in futures markets, hampered gold’s price performance – contributing to an 8 per cent quarter-on-quarter drop in the price during Q3 2022.

Despite these headwinds, gold continued to hold favour with retail investors who reacted to different market cues and turned to gold for its status as a store of value amidst rampant inflation and geopolitical uncertainty. Investors sought to hedge inflation with bar and coin investment, driving total retail demand up 36 per cent y-o-y. This was supported by significant purchasing in Turkey (up more than fivefold y-o-y) and in Germany (up 25 per cent y-o-y at 42 tonnes), but also from visible contributions across all major markets.

Jewellery consumption continued to rebound and is now back to pre-pandemic levels, reaching 523 tonnes – 10 per cent higher compared to Q3 2021. Much of this growth was spearheaded by India’s urban consumers who drove up demand 17 per cent y-o-y to 146 tonnes.

Similarly, impressive growth was also seen in much of the Middle East, with Saudi Arabian jewellery consumption up 20 per cent since Q3 2021, and United Arab Emirates up 30 per cent for the same period. Chinese jewellery demand also saw a modest 5 per cent increase y-o-y driven by improved consumer confidence and a dip in the local gold price, prompting the release of some pent-up demand.

Just as consumer gold demand firmed, central bank buying picked up significantly with estimated record purchases of nearly 400 tonnes in the third quarter. This pattern reflects insights from our recent central bank survey, in which 25 per cent of respondents said they intended to increase their gold reserves in the next 12 months.

Turning to supply, mine production (net of hedging) was up 2 per cent versus Q3 2021, with gold mining seeing its sixth consecutive quarter of growth. By contrast, recycling was 6 per cent lower y-o-y in Q3, as consumers held onto their gold in the face of surging inflation and an uncertain economic outlook.

“Despite a shaky macroeconomic environment, demand this year has reflected gold’s status as a safe haven asset, underscored by the fact that it has outperformed most asset classes in 2022,” World Gold Council Senior Markets Analyst Louise Street said.

“Looking ahead, we anticipate central bank buying and retail investment to remain strong and that could help offset potential declines in OTC and ETF investment that may prevail if the dollar strength persists. We also expect to see jewellery demand continue to perform strongly in some regions such as India and Southeast Asia, while the technology sector will likely witness further decline in the face of economic deceleration,” she added.




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