Gold demand drops 7% annually as ETF outflows gain traction

Net sales for gold ETF placed overall gold demand into a year-on-year decline, despite demand increasing in all other sectors

  
Gold bars are seen at the Austrian Gold and Silver Separating Plant 'Oegussa' in Vienna, Austria, March 18, 2016. Image used for illustrative purposes.

Gold bars are seen at the Austrian Gold and Silver Separating Plant 'Oegussa' in Vienna, Austria, March 18, 2016. Image used for illustrative purposes.

REUTERS/Leonhard Foeger
Demand for gold drops 7 percent annually in the third quarter of 2021 as outflows from gold-backed exchange-traded funds (gold ETFs), according to the World Gold Council’s latest Gold Demand Trends report.

Net sales for gold ETF placed overall gold demand into a year-on-year decline, despite demand increasing in all other sectors, the report showed.

Consumer purchases of gold jewellery increased 300 percent year-on-year to 443 tonnes.

Meanwhile bars and coins, which are famous for retail investors, saw a fifth consecutive quarter of year-on-year gains in the same period.

Gold used in technology grew 9 percent year-on-year, and central banks added 69 tonnes to their reserves.

“The relatively modest outflows from gold ETFs have had a disproportionate effect on this year’s figures, outweighing positivity almost everywhere else across the board,” Louise Street, senior markets analyst at the World Gold Council said.

Street expects the demand will be the same for the rest of the year, “strong consumer and central bank will mitigate losses from ETFs.”

“Jewellery demand will continue to exceed last year’s levels, but investment demand in total will be weaker in 2021, despite healthy bar and coin demand,” he added.

Copyright: Arab News © 2021 All rights reserved. Provided by SyndiGate Media Inc. (Syndigate.info).

Disclaimer: The content of this article is syndicated or provided to this website from an external third party provider. We are not responsible for, and do not control, such external websites, entities, applications or media publishers. The body of the text is provided on an “as is” and “as available” basis and has not been edited in any way. Neither we nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this article. Read our full disclaimer policy here.

More From Commodities