LONDON (Reuters) – International demand for gold fell within the third quarter to its lowest for the reason that final quarter of 2020 as monetary traders offered the metallic, the World Gold Council (WGC) mentioned on Thursday.
Nonetheless, demand from jewellers, central banks and smaller, retail traders shopping for gold bars and cash was strong, the WGC mentioned.
Whole demand for gold over July-September was 831 tonnes, down from 894.4 tonnes in the identical interval of final 12 months and 1,084.9 tonnes within the third quarter of 2019, the WGC mentioned in its newest quarterly report.
The numbers present the persevering with influence of the coronavirus pandemic.
Central banks paused purchases because the virus unfold and retailer closures and job losses prompted jewelry gross sales to plunge, significantly in Asia, however the specter of financial injury triggered enormous investor stockpiling, primarily within the West.
Gold is usually seen as a protected retailer of worth.
Central financial institution and jewelry demand have partly recovered as economies revived. Smaller traders are shopping for at a sooner price than earlier than the pandemic, however bigger traders have been fickle.
Trade traded funds (ETFs) storing gold offered metallic final 12 months as financial progress revived and once more this 12 months as consideration turned to rate of interest rises that may make non-yielding gold much less engaging.
For the total 12 months, “sturdy shopper and central financial institution demand will mitigate losses from ETFs” mentioned the WGC’s senior markets analyst, Louise Road.
“Jewelry demand will proceed to exceed final 12 months’s ranges, however funding demand in whole might be weaker in 2021, regardless of wholesome bar and coin demand,” she mentioned. (Graphic: Gold demand, https://fingfx.thomsonreuters.com/gfx/ce/znvnezgmxpl/WGCpercent20Q3.JPG)
The WGC forecast demand from jewellers at 1,700–1,800 tonnes for 2021, which might evaluate to 1,401 tonnes in 2020 and a couple of,123 tonnes in 2019.
It mentioned it “would not be stunned” if central banks purchased greater than 450 tonnes this 12 months, up from 255 tonnes in 2020 however beneath the 605 tonnes they purchased in 2019.
Under are numbers for the third quarter and comparisons.
GOLD DEMAND (T)*
Q3 Q2 Q3 % %
2021 2021 2020 change change
Jewelry 442.6 396.6 332.9 12% 33%
Expertise 83.8 80.2 77.2 4% 9%
– of which Electronics 68.9 66.4 63.2 4% 9%
– different Industrial 12.0 10.9 10.9 10% 10%
– dentistry 2.9 2.9 3.1 0% -8%
Funding 235.0 283.8 495.0 -17% -53%
-of which bars & cash 261.7 243.1 221.0 8% 18%
– ETFs & comparable -26.7 40.7 273.9
Central banks 69.3 190.6 -10.6 -64%
Whole demand 830.8 951.2 894.4 -13% -7%
* Supply: World Gold Council, Gold Demand Tendencies Q3 2021