Gold Demand Slumped in Q3: World Gold Council

The outflows from ETFs negated the strong recovery in other sectors of gold demand.

SEATTLE (Scrap Monster): The Gold Demand Trends Q3 2021 report published by the World Gold Council (WGC) says that the demand for the yellow metal dropped significantly by almost 7% to total 831 tonnes during the quarter.

The dip in gold demand was mainly driven by gold-backed exchange traded funds (ETFs), which recorded modest outflows during the quarter. The global gold ETFs recorded outflows of 27 tonnes, when compared with major inflows of 274 tonnes during the same quarter a year before. The outflows from ETFs negated the strong recovery in other sectors of gold demand.

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The jewellery demand in Q3 surged higher by 33% over the previous year to 443 tonnes, driven by ongoing global economic recovery. The bar and coin investment was up by 18% to 262 tonnes. The purchases were boosted by sharp dip in gold prices during the month of August. The volume of gold purchases by world central banks recorded marginal improvement from the previous year. The global central bank gold reserves grew by 69 tonnes during the quarter.

The huge dip in recycling led to 3% decline in gold supply during the quarter. The quarterly demand stood at 84 tonnes.

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