Gold ETFs See Strong Demand In Volatile October After Robust Global Gold Demand In Q3

– Gold ETFs saw inflows in volatile October as investors again hedged risk
– Gold ETFs see demand of 16.5 tonnes(t) in October to total of 2,346t, the equivalent of US$1B in inflows
– Global gold demand was robust in Q3 – demand of 964.3 tonnes – plus 6.2t yoy
– Strong central bank and store of value coin and bar demand offset the gold ETF outflows in Q3
– Central bank gold reserves grew 148.4t in Q3, up 22% yoy
– Gold coin and bar investors took advantage of the price dip and demand for gold coins and bars rose 28% yoy

The latest research from the World Gold Council on gold demand trends in Q3 and demand for gold ETFs in October are must reads and point to strong ongoing demand which bodes well for the gold market in the coming  months.

According to the World Gold Council, gold demand was 964.3t in Q3 which was 6.2t higher y-o-y.

Gold coin and bar demand jumped 28% to 298.1t as investors and store of value buyers took advantage of the lower gold price and sought protection against currency weakness and tumbling stock markets.

Jewellery demand rose 6% in Q3 as lower prices seem to have caught Asian consumers’ attention. Technology registered its eighth consecutive quarter of y-o-y growth, up 1%.

Central bank gold buying was robust again as a growing number of central bank buyers saw demand in this sector rise 22% y-o-y to 148.4t, the highest level of quarterly net purchases since 2015.

The 13% rise in global gold demand offset large ETF outflows, primarily from the U.S. market.

However, those gold ETF outflows reversed in a very volatile October and global gold ETFs and similar products rose in October by 16.5 tonnes(t) to 2,346t which was the equivalent to US$1.0bn in inflows

Excellent research, data and charts from WGC here:

Positive inflows in gold-backed ETFs as investors hedge risk (Gold.org)

Gold Demand Trends Q3 2018 (Gold.org)

 

News and Commentary

Stocks Lose Gains, Dollar Falls as Traders Mull a Split Congress: Markets Wrap (Bloomberg.com)

Gold gains on weaker dollar; U.S. election in focus (Reuters.com)

Election results 2018: Track midterm races and the battle for control of Congress (MarketWatch.com)

China’s gold consumption continues to grow (Nation.com.pk)

Former JP Morgan trader pleads guilty to manipulating U.S. metals markets for years (CNBC.com)

October inflows to gold-backed ETFs up as investors hedged risk -WGC (Reuters.com)

Energy cost of ‘mining’ bitcoin is more than twice that of gold (TheGuardian.com)


U.S. Treasuries “see wild swings”. Source: Bloomberg

Democrats Poised to Take House Control as GOP Holds Senate (Bloomberg.com)

Democrats Win Control Of US House As Republicans Keep Senate (ZeroHedge.com)

Mortgage Rates Hit 7-Year High (EconomicBlogs.org)

How Did “Exhaustive” Investigation of the Silver Market by the CFTC miss this? (GoldSeek.com)

GATA’s past and the future of gold and silver – Murphy (Gata.org)

 

Gold Prices (LBMA AM)

06 Nov: USD 1,234.85, GBP 947.75 & EUR 1,083.58 per ounce
05 Nov: USD 1,231.60, GBP 946.61 & EUR 1,081.96 per ounce
02 Nov: USD 1,235.50, GBP 948.00 & EUR 1,079.83 per ounce
01 Nov: USD 1,223.25, GBP 950.47 & EUR 1,075.85 per ounce
31 Oct: USD 1,217.70, GBP 955.77 & EUR 1,074.25 per ounce
30 Oct: USD 1,220.00, GBP 956.36 & EUR 1,074.33 per ounce

Silver Prices (LBMA)

06 Nov: USD 14.70, GBP 11.25 & EUR 12.89 per ounce
05 Nov: USD 14.74, GBP 11.33 & EUR 12.96 per ounce
02 Nov: USD 14.82, GBP 11.38 & EUR 12.95 per ounce
01 Nov: USD 14.45, GBP 11.19 & EUR 12.68 per ounce
31 Oct: USD 14.34, GBP 11.23 & EUR 12.64 per ounce
30 Oct: USD 14.43, GBP 11.32 & EUR 12.71 per ounce


Recent Market Updates

 

– Venezuela Seeks To Repatriate $550 Million Of Gold From London
– Big Short’s Eisman Is Shorting Two U.K. Banks on Brexit
– “Red October” Highlights Importance of Rebalancing Portfolios and Gold’s “Very Positive” Outlook
– Alarm Bells Ring and Gold Rises In October As Stocks and Property Fall Globally
– Gold Analysts At LBMA See 25% Return To $1,532/oz In 12 months
– Gold Improves Investment, Pension and Central Bank Portfolio’s Risk-Adjusted Returns
– Gold Gains Nearly 1% On Week As Global Stock Markets Fall Sharply
– Dublin Housing Boom Set To Bust?
– Palladium Surges To All Time Record High On Russian Supply Concerns
– Happy Birthday GoldCore

Mark O'Byrne

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