The world gold council reports total gold supply fell 2 percent in the third quarter

2019-05-07 5448Secondary browse

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SMM network news: the World Gold Council recently released the third quarter of 2018 "Gold demand trend report" data shows that Gold etfs in the third quarter outflow of 103 tons, is since the fourth quarter of 2016 for the first time since the total net outflow of the quarter. Demand for gold was 9,64.3 tonnes in the quarter, up only 6.2 tonnes from a year earlier. Global central bank gold reserves rose 148 tonnes, up 22 per cent year-on-year. China's gold market remains positive, with consumer demand up 14 per cent year-on-year. Global investment demand for gold bars and COINS rose 28 percent to 298 tons in the third quarter, the report showed. It was the biggest year-on-year increase since the second quarter of 2013. The fall in gold prices has led individual investors to seek safety in gold bars and COINS, as well as increased purchases of gold jewellery in India, China and throughout southeast Asia. China, the world's largest market for gold bars and COINS, saw demand rise 25 per cent year-on-year to 86 tonnes in the quarter. Analysts said gold prices fell again this quarter as investors piled into the market amid escalating trade tensions between China and the United States, as well as setbacks in China's stock and bond markets. At the same time, thanks to the Tanabata festival, Mid-Autumn festival, as well as the continuous innovation of marketing strategy, the demand for gold jewelry is strong this quarter. Wang lixin, managing director of the China division of the world gold council, said China, the world's largest market for gold bars and COINS, saw a 28 per cent jump in physical gold investment demand in the current quarter. This is yet another example of the irreplaceable safe-haven role of gold in portfolios. From the third quarter data, China's gold jewelry consumer demand by specific holiday impact is very significant. Gold jewelry retailers are also taking advantage of the opportunity to launch product marketing campaigns that drive sales and increase brand loyalty. Demand for gold in technology applications rose 1 per cent year-on-year to 85 tonnes in the third quarter, according to the report. It was the eighth consecutive quarter of demand growth, driven by demand for gold in electronics such as smartphones, servers and cars. Notably, total gold supply edged down 2 per cent in the third quarter. Two consecutive quarters of unhedged gold prices, falling gold prices and an economic boost in the United States and Europe are weighing on supply, analysts said. In contrast, mine gold production rose 2 per cent to 875 tonnes in the current quarter, the sixth consecutive increase. Among them, the increase of output in major gold producing countries such as Russia and Canada and the improvement of production pipelines will be the supporting factors for the further increase of mine gold output in 2018.