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Third quarter gold demand rose by 8% year-on-year, reaching a two-year high of 1,120.9 tonnes. Q3 2015 was a period of two distinct halves: ETF outflows contributed to a price dip in July, which boosted consumer demand around the world.

For many decades, the US dollar has been the main reserve currency worldwide and it still accounts for more than 50% of international reserves. However, its share has been gradually declining, while that of other currencies, like the Chinese RMB, has grown, signalling the potential emergence of a multicurrency reserve system.

Alistair Hewitt, Head of Market Intelligence is interviewed on the findings of the World Gold Council’s Q2 2015 Gold Demand Trends report.

The contrast between the global picture and the more granular demand data clearly demonstrates the multi-faceted nature of the gold market. The numerous and varying roles that gold plays means it responds to different cues in different ways.

Our report, Turkey: gold in action, explores the role gold plays across the entire value chain, and assesses gold’s economic contribution to Turkey.   

Gold demand totalled 929t in the third quarter, which proved to be a generally subdued quarter for the gold market. Jewellery demand softened by 4% year-on-year, but the comparison continues to be heavily influenced by the events in 2013. 

In 2013 China became the world’s largest gold market, accounting for around a third of global gold demand. By the end of 2017, we expect demand to have grown by at least a further 20%. Because of its sheer size and impact on the global gold market, China is really in the spotlight. 

Gold demand of 964t in the second quarter was, unsurprisingly, lower when compared with the exceptional upsurge in demand in Q2 2013. Jewellery demand weakened year-on-year, but the broad, 5-year uptrend remains intact.