Global Gold Demand Soars to Record Levels
In the third quarter of the year, global gold demand increased by 5% year-on-year, reaching 1,313 tons. According to the "Gold Demand Trends" report published by the World Gold Council, this increase coincided with gold prices reaching new record levels throughout the quarter. The value of gold demand surpassed $100 billion, marking a historic milestone with a year-on-year increase of 35%.
The data in the report indicates that global interest in gold was particularly concentrated in investment segments. Gold exchange-traded funds (ETFs) emerged as one of the main drivers of this growth, as investors viewed gold as a safe haven, gaining significant positioning in the market.
Decline in jewelry consumption Gold jewelry consumption experienced a 12% year-on-year decline in the third quarter, despite strong performance in India. While total consumption decreased, consumer spending increased in value terms, with this demand rising by 13%, exceeding $36 billion.
The decline of gold in traditional jewelry markets like India has created a notable trend when combined with the effects of economic fluctuations. However, the increase in the value of jewelry demand indicates that consumers are gravitating toward smaller quantities of higher-quality products.
Slowdown in central bank purchases Gold purchases by central banks remained at 186 tons in the third quarter. Despite the slowdown in the pace of buying, central bank gold purchases have continued in line with 2022 since the beginning of the year.
During this period of ongoing global economic uncertainty, central banks are maintaining their strategies for diversifying reserves. Gold continues to serve as a safe haven in central banks' portfolios.
Impact of artificial intelligence in the technology sector Developments in artificial intelligence have continued to support gold usage in the technology sector. In particular, the use of gold in the production of electronic devices maintained its importance in this quarter and contributed to innovation efforts in the sector.
AI applications have encouraged the preference for gold as a critical raw material in making electronic components more efficient and durable. Thus, the demand for gold continues to diversify in parallel with technological advancements.