Total global gold demand surged to an unprecedented high of over USD 100 billion in the third quarter of 2024, marking a significant milestone in the precious metal's market history, according to World Gold Council.

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According to the Q3 2024 Gold Demand Trends report, total gold demand increased by 5 per cent year-on-year, reaching 1,313 tonnes, driven by robust investment in a record-high price environment.

Investment demand for gold skyrocketed, more than doubling from the previous year to 364 tonnes. This surge was primarily fueled by a shift in demand for gold exchange-traded funds (ETFs) among Western investors, with global gold ETFs adding 95 tonnes--a notable rebound as this marked the first positive quarter since Q1 2022.

Despite a 9 per cent decline in bar and coin demand, the year-to-date total remains strong at 859 tonnes, significantly higher than the 10-year average of 774 tonnes.

Central bank purchases showed a slowdown in Q3 but remained healthy, with demand totaling 186 tonnes. Year-to-date central bank demand reached 694 tonnes, aligning with figures from the same period in 2022.

Gold prices continued their upward trajectory during the quarter, averaging US$2,474 per ounce. This rise, however, tempered global demand for gold jewelry, which fell by 12 per cent year-on-year in volume. Nevertheless, the value of jewelry consumption increased by 13 per cent, indicating that consumers are willing to spend more for smaller quantities of gold products.

Technological demand for gold also saw growth, rising 7 per cent year-on-year, particularly supported by advancements in the electronics sector amid the ongoing AI boom.

The total supply of gold increased by 5 per cent compared to the previous year, driven by a 6 per cent rise in mine production and an 11 per cent increase in recycling efforts.

Louise Street, Senior Markets Analyst at the World Gold Council, commented, "Q3 saw increased investment and over-the-counter activity prop up global gold demand and drive price performance."

He added, "While the higher gold price dampened demand in the majority of consumer markets, the import duty cut in India kept jewellery and bar and coin demand remarkably high in a record-breaking price environment."