Demand for bullion from gold exchange traded funds rose 58% in the third quarter from the year-ago period, according to a report released Thursday by the World Gold Council.
Demand from gold ETFs represented 77.6 metric tons in the third quarter valued at $4.2 billion, compared with 51.7 tons in the second quarter.
“ETFs were also seen to be growing in popularity in markets such as India and Japan,” World Gold council said.
Gold ETF holdings increased steadily throughout the first eight weeks of the quarter but some investors booked profits before the September correction.
Investment demand for gold in the form of bars, coins and ETFs reached 468.1 metric tons in the third quarter, up 33% from the third quarter of 2010, according to the report.
Gold prices fell sharply in September but there was renewed buying interest in ETFs near the end of the quarter as lower price levels were seen by some investors as an opportunity, according to the report.
Total gold demand in the third quarter including technology applications and jewelry was about 1,054 tons, up from roughly 945 tons in the second quarter.
Gold ETFs followed global equities into red in Thursday’s sell-off. [Silver ETFs Guide Precious Metals Lower]
ETFS Physical Swiss Gold Shares
