Gold Demand Data Indicates More Economic Weakness

The Commodity Report #179

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Gold Demand Data Indicates More Economic Weakness

Gold demand for technology purposes is still up but the pace continues to decline for the second quarter in a row now, as the latest data by the World Gold Council for Q3 showed.

The total gold demand (inclusive of OTC investment) gained meanwhile 5% y/y to 1,313 tonnes. Global gold ETF inflows (95t) were a major driver of growth as Q3 was the first positive quarter for ETF flows since Q1’22.

The Gold Price

How far can a trend go - probably far longer than we initially think. We view gold as a long-only-trade, which means we don’t short gold as it is a proxy of financial liquidity and conditions in the market.

Here is a great chart by Bloomberg that highlights the sustaining costs among the top three gold producers. After Q3 numbers - Newmont’s sustaining costs will probably remain the highest - currently at $1.611.

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In Other News…

Some stats with the election ahead on Tuesday:

Source: Deutsche Bank Research

Source: UBS Research

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This week, look out for the following:

• US Elections on Tuesday

• FOMC Meeting and Rate Decision on Thursday (consensus is another 25bps rate cut)

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Research Service

If you’re an institutional investor, check out our research products for commodity-related futures or equities here.

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Till next Monday, Lukas

If you have any questions in the meantime, please feel free to contact me via X or Mail.

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