Global Gold Demand Trends in Q3 2023

The World Gold Council’s (WGC) recent report highlights a significant 6% decline in global gold demand during the third quarter of 2023, totaling 1,147.5 tonnes. This drop is attributed to reduced interest in bars and coins, coupled with decreased purchasing by central banks.

India’s Exceptional Growth

Contrary to the global trend, India, known as the world’s second-largest gold consumer after China, experienced remarkable growth. The country saw a robust 10% increase in gold purchases, reaching 210.2 tonnes in Q3 compared to 191.7 tonnes during the same period last year.

Regional Variances

China, another significant player in the gold market, observed a marginal uptick in gold acquisitions, rising to 247 tonnes in Q3 2023 from 242.7 tonnes in the previous year’s corresponding period. In contrast, Pakistan witnessed an 11% decline in gold demand to 11.6 tonnes, while Sri Lanka recorded a substantial eight-fold increase to 2.4 tonnes.

Jewellery and Investment Trends

The WGC report outlines a 1% decrease in global jewellery demand for gold, totaling 578.2 tonnes in Q3 2023 compared to 582.6 tonnes last year. This dip is attributed to factors like high gold prices and economic uncertainty, particularly affecting price-sensitive markets in Asia and the Middle East.

Furthermore, investment demand for gold ETFs, bars, and coins showed a notable decline, dropping by 14% to 296.2 tonnes. The report highlights lower demand pockets in regions like Europe, the US, Turkey, Australia, and Iran.

Other Usage Sectors and Central Bank Purchases

Gold demand for technological applications witnessed a 3% decline to 75.3 tonnes, primarily due to weak demand in the electronics sector, albeit with some sectors showing signs of recovery.

Moreover, central banks reduced their gold purchases by 27%, amounting to 337.1 tonnes in Q3 compared to 458.8 tonnes in the previous year’s same period.

Supply Dynamics

On the supply side, total gold supply increased by 6% to 1,267.1 tonnes in Q3 2023. Mine production notably reached a record high of 971 tonnes during this period, while recycled gold also saw a year-on-year increase to 289 tonnes, as per the report’s findings.