Global gold demand stays strong, supporting record-high prices World Gold Council

wcg gold price

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The post-COVID economic recovery and supply-side disruptions, which have been exacerbated by the Russia–Ukraine war, will likely keep inflation higher for longer. The start of November saw gold pressured by higher opportunity costs and a Republican clean sweep. Global gold ETFs shed an estimated US$809mn (12t) during the first week of November, with the bulk of outflows stemming from North America, which were partially offset by strong Asian inflows. Potentially signalling renewed fears around the resumption of the trade war between the US and China. Additionally, COMEX net positioning also fell 74 tonnes, an 8% drop from the prior week.

Chart 9:  Turkey, China and India led the way as buying outweighed sales during Q1

Meanwhile, South Africa continues to benefit from cooling inflation, paving the way for a higher probability of rate cuts7 and driving the country’s six-month inflow streak. Neither WGC nor Oxford Economics provides any warranty or guarantee regarding the functionality of the tool, including without limitation any projections, estimates or calculations. “Interestingly, we are witnessing shifting behaviour trends from Eastern and Western investors. Typically, investors in Eastern markets are more responsive to the price, waiting for a dip to buy, whereas Western investors have historically been attracted to a rising price, tending to buy into the rally. In Q1, we saw those roles reversed with investment demand in markets such as China and India growing considerably as the gold price surged.

October in review

The first week of November saw gold move lower after hitting a new all-time-high on the first of the month (Table 1). Quarterly and annual for supply and demand volumes from 2010 up to the most recently available quarter. A breakdown of the above-ground stock of gold, including a time series of how it has evolved since 2010, and the latest year-end estimate of below-ground stock. Utilise multiple charting tools and download options which allow you to work with the data. Login or register to read the commentary and download the data files on this page. Investors should discuss their individual circumstances with their appropriate investment professionals before making any decision regarding any Services or investments.

Central banks

  1. And in the Middle East, the Qatar Central bank reported a 2t increase in its gold reserves in Q1.
  2. In Australia the weakening Aussie dollar enlarged gold’s return locally and likely pushed up investor currency hedging needs, contributing to the region’s fifth consecutive monthly inflow.
  3. The People’s Bank of China carried its recent momentum into Q1, reporting an addition of 27t to its gold reserves during the quarter.
  4. World Gold Council and its affiliates assume no responsibility for updating any forward-looking statements.
  5. A breakdown of the above-ground stock of gold, including a time series of how it has evolved since 2010, and the latest year-end estimate of below-ground stock.

Reproduction or redistribution of any of this information is expressly prohibited without the prior written consent of World Gold Council or the wcg gold price appropriate copyright owners, except as specifically provided below. 1Recent comments from BoE Governor Andrew Bailey about a “historic shock” to UK growth and incomes could easily be echoed in other key markets. However, the Republican sweep has gone hand-in-hand with an acceleration of the run up in yields and a quick reversal higher in the dollar index as well – driven by a sharp and nervous move lower in the euro and yen. 1Over-the-counter (OTC) transactions (also referred to as ‘off exchange’ trading) take place directly between two parties, unlike exchange trading which is conducted via an exchange.

Gold-backed ETFs and similar products account for a significant part of the gold market, with institutional and individual investors using them to implement many of their investment strategies. Flows in ETFs often highlight short-term and long-term opinions and desires to holding gold. The data on this page tracks gold held in physical form by open-ended ETFs and other products such as close-end funds, and mutual funds.

Gold ETFs holdings

In addition, demand for gold in technology recovered 10% year-on-year driven by the AI boom in the electronics sector. A cross-sectional look at the correlation of gold to other major asset classes.

wcg gold price

There can be no assurance that any forward-looking statements will be achieved. World Gold Council and its affiliates assume no responsibility for updating any forward-looking statements. “A number of factors are behind the recent surge including heightened geopolitical risk and ongoing macroeconomic uncertainty driving safe-haven demand for gold. In addition, the continued and resolute demand from central banks, strong OTC investment and increased net buying in the derivatives market, have all contributed to the higher price of gold. The Gold Outlook 2022 outlined our expectation for the competing forces of higher, more persistent inflation and rising rates to be the biggest influences on gold’s performance.