Gold demand rises as investors grow nervousChristian Fernsby ▼ | November 5, 2019
A slew of investment in gold-backed exchange traded funds (ETFs) offset a decline in purchases of jewellery, bars and coins to push global gold demand slightly higher in the third quarter, the World Gold Council (WGC) said on Tuesday.
World The world's appetite for gold was 1,107.9 tonnes over July-September
Topics: Gold demand investors
That took demand in the first three quarters to 3,317.5 tonnes - the most for any January-to-September period since 2016, it said.
"The continued surge into ETFs more than compensated for weaker demand elsewhere," said the WGC's head of market intelligence, Alistair Hewitt.
Gold is traditionally seen as a safe investment in uncertain times, and the worsening health of the global economy triggered a flood of interest from financial investors such as asset managers and hedge funds.
Holdings of gold-backed ETFs rose by 258.2 tonnes during the third quarter and touched a new all-time high, the WGC said.
Demand for jewellery at 460.9 tonnes in the third quarter was down 16% from the same period a year ago, while purchases of bars and coins halved to 150.3 tonnes, the WGC said.
Central banks added 156.2 tonnes to their reserves in the third quarter, down sharply from July-September last year, the WGC said. ■