Global Gold Demand Hits Record $100 Billion in Q3 2024 Amid Central Bank Buying, Prices Surge 32% YTD

Oct 29, 2024, 10:12 PM

Global gold demand reached a record high in the third quarter of 2024, surpassing $100 billion for the first time, according to the World Gold Council. Total gold demand, including over-the-counter (OTC) investment, increased by 5% year-on-year to 1,313 tonnes, setting a new record for a third quarter. Gold jewellery consumption globally fell 12% year-on-year to 459 tonnes, despite strong growth in India. However, the value of jewellery demand jumped 13% year-on-year to over $36 billion, indicating consumers spent more despite purchasing reduced quantities. Central banks continued their gold buying spree, with global central banks now holding 12.1% of the world's gold reserves, the highest level since the 1990s. They purchased 483 tonnes on net in the first half of 2024, 5% above the previous record, although the pace slowed to 186 tonnes in Q3. Gold ETF inflows were a major driver of growth, with global gold ETF holdings increasing by 95 tonnes in Q3, the first positive quarter since Q1 2022. In China, gold-backed ETF holdings increased by 48.69% compared to the end of 2023, driven by rising gold prices. Despite high prices deterring jewellery buyers and causing gold consumption in China to fall 11.18% year-on-year in the first nine months of 2024, gold bar and coin investment increased by 27.14% year-on-year to 282.721 tonnes. India's gold consumption in the September quarter rose 18% year-on-year, driven by increased investment and jewellery demand. India’s gold consumption for 2024 is projected to be between 700 and 750 tonnes, according to the World Gold Council. Gold prices have risen more than 32% year-to-date in 2024, the metal's best annual growth since 1979, and have consistently outperformed both inflation and the growth rate of the world economy.