2023-10-31 12:43:00
Daily Economic News 2023-10-31 20:43:06
On October 31, the World Gold Council released a global gold demand trend report for the third quarter of 2023. It showed that global central banks continued to purchase gold strongly. Gold demand (excluding over-the-counter transactions) in the third quarter was 1,147 tons, which was higher than the five-year average. 8%. In addition, the World Gold Council said that central banks are expected to continue to maintain strong demand for gold purchases during the remainder of this year.
Every reporter Xiao Shiqing Every editor Ma Ziqing
On October 31, the World Gold Council released a global gold demand trend report for the third quarter of 2023, which showed that global central banks continued to purchase gold strongly, providing support for gold demand. Gold demand (excluding over-the-counter transactions) in the third quarter was 1,147 tons, 8% higher than the five-year average.
As one of the important official reserve assets, gold has been increased by central banks of various countries for many consecutive months. As of the end of September, China’s official gold reserves had increased for eleven consecutive months to 2,192 tons (approximately 70.46 million ounces), with an increase of 78 tons in the third quarter. According to data from the World Gold Council,In the third quarter, global central banks net purchased 337 tons of gold, the third-highest quarterly net gold purchase in history.
Although it failed to break the record in the third quarter of 2022, the central bank’s gold purchase demand since the beginning of 2023 has reached 800 tons, setting the latest record since the association began to collect statistics. The World Gold Council stated,Central banks are expected to continue to maintain strong gold purchase demand during the remainder of this year, which indicates that the total central bank gold purchase demand throughout 2023 is expected to remain strong.
Domestic gold ETFs achieved net inflows of 4.5 billion yuan in the third quarter
Data show that China’s total domestic gold jewelry demand in the third quarter was 154 tons, a year-on-year decrease of 6%, but an increase of 16% compared with the second quarter. Domestic demand for gold bars and gold coins was strong in the third quarter, reaching 82 tons, a year-on-year increase of 16% and a month-on-month surge of 66%. The rising popularity of gold and investors’ hedging needs played a key role.
In terms of gold investment, as of the end of September, the asset management scale (AUM) of gold ETFs in the Chinese market was 27 billion yuan (approximately 3.7 billion U.S. dollars), with a net inflow of 4.5 billion yuan (approximately 600 million U.S. dollars) in the third quarter; positions increased by 9.5 tons to 59.7 tons. In the third quarter, the inflow of gold ETFs in the Chinese market reversed the previous weak situation, with net inflows of approximately 4 billion yuan (approximately 500 million U.S. dollars, 8 tons) year-to-date.
Wang Lixin, CEO of the World Gold Council China, pointed out,The main reason for the substantial inflow of gold ETFs this quarter is that domestic gold prices have maintained a high momentum during most of the third quarter. At the same time, investors’ demand for safe havens has also been rising amid the weakness of the stock market and the fluctuation of the renminbi; in addition, the timely announcement of gold ETF issuers Promotion is also an important reason。
Looking at the global situation, in the third quarter, total global gold demand (excluding over-the-counter transactions) was 8% higher than the five-year average, but decreased by 6% year-on-year to 1,147 tons; while the total gold demand including over-the-counter transactions and inventory flows Demand increased by 6% year-on-year to 1,267 tons; during the same period, global gold investment demand was 157 tons, a year-on-year increase of 56%. Among them, investment in gold bars and gold coins was 296 tons, a year-on-year decrease of 14%; global gold ETF outflows were 139 tons, a significant decrease compared with the outflows in the same period last year (244 tons).
The World Gold Council pointed out that global gold ETF continued to outflow in the third quarter, mainly affected by investors’ expectations that interest rates will continue to be high. However, off-site investment continued to strengthen, reaching 120 tons in the third quarter, partly due to the growth in demand from high-net-worth groups in Turkey and inventory replenishment in other markets.
World Gold Council: Gold demand may achieve unexpected growth
In addition, gold, as one of the important official reserve assets, has been increased by the central bank for many consecutive months. As of the end of September, China’s official gold reserves had increased for eleven consecutive months to 2,192 tons, with an increase of 78 tons in the third quarter. Data show that global central banks purchased 337 tons of gold in the third quarter, the third-highest quarterly net gold purchase in history. Although it failed to break the record in the third quarter of 2022, the central bank’s gold purchase demand since the beginning of 2023 has reached 800 tons, setting the latest record since the association began to collect statistics.
The World Gold Council stated that central banks are expected to continue to maintain strong demand for gold purchases during the remainder of this year, which indicates that the total central bank gold purchase demand throughout 2023 is expected to remain strong.
Louise Street, senior market analyst at the World Gold Council, said that since the beginning of this year, gold demand has remained resilient and has performed well despite the adverse effects of high interest rates and a strong U.S. dollar. Our report shows that gold demand remained healthy in the third quarter compared to the five-year average. Looking ahead, gold demand is likely to experience unexpected growth in anticipation of rising geopolitical tensions and continued strong gold buying by global central banks.
Wang Lixin said that looking forward to the future, gold jewelry demand will remain relatively stable in the fourth quarter. Domestic wedding gold jewelry demand, various shopping festivals and holidays may boost gold jewelry consumption, but the rise in RMB gold prices and the late Spring Festival may postpone the traditional gold consumption peak season to early 2024, thus limiting gold jewelry consumption in the fourth quarter. need. In terms of gold investment, domestic retail gold demand will remain strong in the fourth quarter.
“RMB gold prices have delivered more attractive year-to-date returns compared with other assets, coupled with economic and geopolitical uncertainties, which may continue to drive up safe-haven demand from domestic investors. But similar to gold jewellery, later The Spring Festival holiday may be detrimental to demand growth in the fourth quarter of this year.” Wang Lixin said.
Cover photo source: Photo by Liu Guomei of Daily Economic News
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