Gold mania hits record highs again
Gold demand reached a record high in the third quarter as geopolitical tensions pushed prices to all-time peaks, according to the World Gold Council. Total demand rose 3 percent year-on-year to 1,313 tonnes between July and September, the highest volume since the council began tracking data about 25 years ago.
Central bank purchases and investor uncertainty, fueled by the Russia-Ukraine war, the Israel-Gaza conflict, and trade tensions, drove the surge. Gold demand by value jumped 44 percent to a record US$146 billion. Support also came from expectations of U.S. interest rate cuts and a weaker dollar, along with strong inflows into gold-backed exchange-traded funds.
However, high prices hurt jewelry demand, which fell 23 percent to 419.2 tonnes—the weakest third quarter since 2020. Gold hit an all-time high of US$4,381.52 an ounce in October before retreating to around US$4,000. Analysts described the drop as a healthy correction that reduced short-term speculation.
