World Gold Council: Robust central bank gold demand in the third quarter, expected to remain high throughout 2023

According to, the World Gold Council’s (WGC) report on “Gold Demand Trends for the Third Quarter” shows that central bank gold purchases continue to remain at historic highs, bringing the quarterly demand, excluding over-the-counter (OTC) trades, to 1,147 tons, an 8% increase over the five-year average.

Data compiled by the WGC indicates a strong demand from central banks in the third quarter, with net purchases of 337 tons. Although this is lower than the third quarter of 2022, the demand so far this year has reached 800 tons, a new high since the institution began collecting this data.

The council predicts that the trend of large-scale gold purchases by central banks will persist until the end of the year, and the entirety of 2023 will witness high demand levels.

In the third quarter, gold for investment purposes amounted to 157 tons, a 56% year-on-year increase, yet below the five-year average. A decline in European demand pressured the demand for gold bars and coins in the third quarter, which, while only totaling 296 tons, saw a quarter-on-quarter increase, significantly surpassing the five-year average.

Gold in Exchange-Traded Funds (ETFs) continued to flow out in the third quarter, largely driven by investor confidence with interest rates remaining high. However, OTC investments reached 120 tons in the third quarter, partially influenced by increased demand in Turkey and other markets boosting their reserves.

Rising gold prices have led to fluctuations in demand for gold jewelry. Consumers in many countries are grappling with rising living costs, causing a decrease in jewelry demand to 516 tons, a 2% drop year-on-year.

For the third quarter, the total gold supply increased by 6%, with the cumulative output to date reaching 2,744 tons. Continued hikes in gold prices led to a recycling volume of 289 tons, an 8% year-on-year growth.

“Annual gold demand has shifted. Despite rising interest rates and a strong dollar, the gold market has performed well. Our report suggests that gold demand this quarter has been stable compared to the five-year average,” believes Louise Street, Senior Market Analyst at the WGC.

“Looking forward, due to escalating geopolitical conflicts and strong central bank demand, we anticipate unexpected growth in gold demand.”

[Source – 上海有色网] 世界黄金协会:三季度央行购金需求强劲 2023年全年将处于较高水平

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