US Gold Demand Rose 58% In Q3, Says World Gold Council

Core Insights - Strong inflows into gold-backed ETFs significantly boosted US gold demand in Q3, with total consumption reaching 186 tonnes, a 58% increase from the same quarter in 2024 [2] - Robust ETF activity compensated for a 33% decline in consumer demand, with total jewellery, bar, and coin sales amounting to 32 tonnes [2] ETF Performance - Q3 marked a record for gold-backed ETFs, with global inflows of $26 billion and total holdings increasing by 222 tonnes to 3,838 tonnes [3] - US-based funds contributed 137 tonnes or $16 billion, representing 62% of the global total [3] - Cumulative net inflows for North American gold-backed ETFs reached $37 billion through September, with 99% from US funds, indicating a strong annual performance [4] Demand Analysis - If Q3 figures had matched the 10-year average of 21 tonnes or last quarter's 70 tonnes, total demand would have fallen by 44% or 4% quarter on quarter, respectively [5] - US gold demand was significantly supported by the ETF market in the previous month [4] October Trends - In October, North American gold ETF holdings rose by 47 tonnes month-on-month, totaling 2,043 tonnes, marking the fifth consecutive month of inflows [6] - Regional assets under management increased to $263.5 billion, driven by a $6.5 billion inflow during the month [6] Global Holdings and Prices - Total global gold ETF holdings reached 3,893 tonnes, up 55 tonnes from September, nearing the all-time high of 3,929 tonnes in November 2020 [7] - Increased holdings and rising gold prices pushed worldwide assets under management to new peaks of $502.8 billion, with bullion prices exceeding $4,381 per ounce on October 20 [7] Trading Volumes - Average daily trading volumes of futures and options on the COMEX marketplace reached $104 billion (or 915 tonnes) in Q3, a 35% increase from the same period in 2024 [8] - North American ETF volumes reached $5 billion (or 42 tonnes), up 135% year on year [8] - Combined, COMEX derivatives and ETF daily volumes accounted for 33% of the global total [8] Volume Trends - US trading volumes peaked at an all-time high of $138 billion (or 1,152 tonnes) per day in September, a 59% increase from August [9] - Volume momentum continued into October, with trading volumes reaching a new peak of $208 billion (or 1,587 tonnes) per day, up 51% month on month [10]