Gold price weak despite demand jump

GLOBAL gold demand in the September quarter was 28% higher year-on-year, according to the World Gold Council.
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Staff reporter

The WGC said the rise was driven by stronger consumer and central bank buying.

Year-to-date demand was up 18% YoY to pre-pandemic levels.

Jewellery consumption was up 10% to 523 tonnes, while demand for the first nine months of 2022 was up 2% to 1454t.

Investment demand (excluding over-the-counter) for the September quarter was 47% lower at 124t, reflecting weak sentiment among some investor segments.

Bar and coin investment was up 36% but was offset by ETF outflows.

"Central banks continued to accumulate gold, with purchases estimated at a quarterly record of nearly 400t," the WGC said.

Technology demand was down 8%.

Total gold supply increased 1% to 1215t with a sixth consecutive quarter of YoY growth in mine production was partly offset by lower levels of recycling.  

The gold price fell by 8% during the September quarter due to US dollar strength following interest rate rises.