The growth was driven primarily by investment demand, which accelerated in the third quarter, reaching 537 tons (47% YoY) and accounting for 55% of total net gold demand.3 This momentum was driven by a powerful combination of an uncertain and unstable geopolitical environment, the weakness of the US dollar, and investors' "lost profit syndrome" (FOMO) as the price rose.
Investors continued to invest in physical gold-backed ETFs for the third quarter in a row, adding another 222 tons, and global inflows reached US$ 26 billion. Since the beginning of the year, gold ETFs have increased their assets by a total of 619 tons (64 billion US dollars). The growth leaders were North American listed funds (346 tons), followed by European (148 tons) and Asian funds (118 tons).
Investments in bullion and coins increased by 17% year-on-year, amounting to 316 tons, while growth was observed in almost all markets, but India (92 tons) and China (74 tons) made a significant contribution. The outlook for gold remains optimistic, as the continued weakness of the US dollar, expectations of lower interest rates and the threat of stagflation may further stimulate investment demand. This year, gold has been setting record after record, and the current situation points to the possibility of further growth in gold prices. Our research shows that the market is not saturated yet, and the strategic rationale for preserving gold remains valid.
