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Gold demand was 964.3t in Q3, just 6.2t higher y-o-y. Robust central bank buying and a 13% rise in consumer demand offset large ETF outflows. Alistair Hewitt explains the findings of our latest Gold Demand Trends report.

Gold demand was 964.3t in Q3, just 6.2t higher y-o-y. Robust central bank buying and a 13% rise in consumer demand offset large ETF outflows.

Gold demand stayed soft in Q2, dropping to 964.3t. The H1 total of 1,959.9t is the lowest since 2009.

Today, China’s gold industry is at a crossroads; leading stakeholders are asking where it will go next. We believe the consideration of three questions will help set the course for the industry over the next three to five years.

Gold rose by more than 4% in the first few months of 2018, only to finish June down by the same amount. Gold’s price momentum and investor positioning in derivatives markets accelerated this descent, but we believe that there may be reasons to be optimistic. Key macroeconomic trends developing in the second half of 2018 may spur investor demand and opportunistic buying.

Over the past decade, the technology sector has accounted for more than 380 tonnes of gold demand annually, a significant figure in itself and almost 13% ahead of central bank net purchases during the same period. This edition of Gold Investor focuses on technology, analysing gold’s current use and future potential across a range of applications.

The 2005-2013 boom in Chinese gold jewellery demand was followed by a fallow few years, which saw demand shrink by one third. But there are green shoots of recovery emerging.

Gold 2048 brings together industry-leading experts from across the globe to analyse how the gold market is set to evolve in the next 30 years with key insights from authors such as George Magnus, senior economist; Rick Lacaille, Global Chief Investment Officer of State Street Global Advisors; and Michelle Ash, Chief Innovation Officer at Barrick Gold.

Over the long run, economic growth is a key driver of gold demand, especially in emerging market countries where there is high affinity for gold as jewellery and investment. At the same time, gold tends to perform well in period of crisis.

Since their introduction in 2003, gold-backed exchange-traded funds (ETFs) have transformed the gold investment market. Read our Gold-backed ETF primer for an overview of the history, features and benefits of gold-backed ETFs.