Mining

Johannesburg – Gold, the timeless haven, has once again proven its allure. The World Gold Council’s latest quarterly report reveals a stunning surge in global gold demand, reaching a record high of 1,313 tonnes in the third quarter of 2024. This 5% year-on-year increase, fueled by a combination of investment fervor and technological advancements, underscores gold’s enduring appeal.

Investment Boom Drives Demand

A significant driver of this surge is the burgeoning investment demand, which more than doubled year-on-year to 364 tonnes. This was primarily propelled by a strong appetite for gold exchange-traded funds (ETFs), particularly from Western investors. Gold ETFs added a substantial 95 tonnes during the quarter, marking the first positive quarter since early 2022.

The allure of gold as a safe haven asset has been amplified by geopolitical tensions and economic uncertainties. The ongoing US presidential election and the escalating conflict in the Middle East have heightened investor anxiety, driving a rush towards gold as a hedge against market volatility.

Technological Advancements Fuel Demand

Beyond investment, the technology sector has also contributed to the rise in gold demand. The AI boom has spurred increased demand for gold in electronics, leading to a 7% year-on-year growth in total gold demand for technology applications.

Supply Keeps Pace

While demand has soared, global gold supply has also seen a notable increase of 5% year-on-year. Mine production jumped 6%, and recycling activities contributed an 11% rise.

Louise Street, Senior Markets Analyst at the World Gold Council, commented, “A ‘fear of missing out’ factor has been a key driver of increased demand this quarter. Investors are not only enticed by the price momentum but are also encouraged by the prospect of future interest rate cuts. Additionally, gold’s role as a safe haven in the face of US political uncertainty and escalating conflicts in the Middle East has further solidified its appeal.”

As gold continues to shine, it remains to be seen whether this golden era will persist. However, the current trends suggest that gold’s allure is far from waning, making it a valuable asset for investors seeking both diversification and protection in uncertain times.