Gold fell for the seventh consecutive month, dropping 2% in October to US$1,639/oz. Despite a strong start to October, gold prices wavered by the end of the first week and drew down to where they had opened by the middle of the month. It would have been a positive month, if not for a final Friday slump on Oct 28th.

Global gold ETFs saw a net outflow of 59t (US$3bn) in October, the sixth straight month of declines in holdings. But October’s outflow was less pronounced than September’s (-95t) as the gold price held relatively steady. Headwinds from persistent dollar strength and rising yields were partially offset by higher inflationary concerns.

Healthy Q3, driven by stronger consumer and central bank buying, helped year-to-date demand recover to pre-COVID norms. Gold demand (excluding OTC) in Q3 was 28% higher y-o-y at 1,181t. Year-to-date (y-t-d) demand increased 18% vs the same period in 2021, returning to pre-pandemic levels.