"Gold will continue to face both opportunities and challenges over the remainder of 2022. While the high inflation environment provides upside impetus, investment remains at risk from dollar strength and rising rates," the WGC said.
Key points included:
• Gold demand (excluding over-the-counter trade) in Q3 was 28% higher year-on-year at 1,181t. Strong consumer demand and central bank buying drove the recovery.
• Global gold jewellery consumption increased 10% year-on-year in Q3. Demand benefited from a pullback in the gold price during the quarter, as well as a strong recovery in urban Indian demand.
• Retail investment in gold bars and coins jumped to a six-quarter high of 351t. Surging global inflation levels fuelled demand across most markets.
• Gold exchange-traded funds experienced outflows of 227t in Q3. Rising interest rates and a surging US dollar fuelled a second consecutive quarter of outflows.
• Central bank buying reached a quarterly record in Q3. It was also the eighth consecutive quarter of positive net demand.
• Total Q3 gold supply increased 1% year-on-year. Lower levels of recycling offset modest growth in mine production.
The full report may be found at this address: https://bit.ly/3DRaTyc
