While the emerging market’s appetite for gold increased in the third quarter, it wasn’t enough to offset the exodus from physically backed gold exchange traded funds and slowing central bank demand.
Total gold demand in Q3 2013 was 869 tons, down 21% in the same quarter year-over-year, according to the World Gold Council.
Comparing third quarter gold consumption between 2012 and 2013, demand from jewellery increased 5.4%, technology rose 0.7% and physical bullion added 4.4%.
Chinese jewellery demand hit 164 tons, up 29% in the third quarter year-over-year. Moreover, jewellery demand in the Middle East, Turkey and across South East Asia all picked up.
However, India gold demand contracted by 71 tons due to the government cracking down on gold imports to save the rupee currency. Moreover, central bank purchases declined 16.8% in the third quarter. Gold-backed ETFs also saw outflows of 119 tons of gold in the third quarter after shrinking by 402 tons in the second quarter this year. [Gold ETFs Brush Off Central Bank Policies]