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Strong inflows into gold-backed exchange-traded funds (ETFs) supercharged US gold demand in the third quarter, World Gold Council (WGC) data showed.
At 186 tonnes, total consumption was up 58% from the corresponding 2024 quarter.
Robust ETF activity offset a 33% decline in consumer demand, the WGC said. Total jewellery, bar and coin sales were 32 tonnes.
Gold ETFs Save The Day
According to the Council, “quarter three marked a record quarter for gold-backed ETFs, with global inflows of $26 billion and total holdings rising by 222 tonnes to 3,838 tonnes.”
Of this, US-based funds accounted for 137 tonnes or $16 billion. That represented 62% of the worldwide total.
The WGC noted that “cumulative net inflows for North American gold-backed ETFs reached $37 billion through September — 99% of which came from US based funds — putting them on pace for their strongest annual performance on record.”
In tonnage terms, North American funds are on course for their third-strongest year on record, it added.
The Council said that cumulative US gold investment demand had been rescued by the ETF market last month.
It noted that “had the quarter three figure been replaced with the 10-year average of 21 tonnes — or even last quarter’s 70 tonnes — total demand in the quarter would have fallen by 44% or 4% quarter on quarter, respectively.”
US gold demand.
Source: World Gold Council
WGC data this week showed that ETF inflows have remained fizzy at the start of quarter four.
In October, North American gold ETF holdings — which were dominated by those locked in US funds — rose by 47 tonnes month-on-month, pushing total holdings to 2,043 tonnes. This was the fifth straight month of fund inflows.
Regional assets under management (AUMs) increased to $263.5 billion, thanks to a $6.5 billion inflow over the course of the month.
This pushed total global gold ETF holdings to 3,893 tonnes, up 55 tonnes from September and just off November 2020’s all-time highs of 3,929 tonnes.
Increased holdings, allied with a buoyant gold price drove worldwide AUMs to new peaks of $502.8 billion. Bullion prices reached new peaks above $4,381 per ounce on 20 October.
Volumes Boom
The WGC said that average daily trading volumes of futures and options on the COMEX marketplace reached $104 billion (or 915 tonnes) in the third quarter.
That was up 35% from the same three months in 2024.
Meanwhile, North American ETF volumes reached $5 billion or 42 tonnes. This was up 135% year on year.
Combined, COMEX derivatives and ETF daily volumes accounted for 33% of the global total.
The WGC commented that “although US volumes eased quarter on quarter, this was mainly due to subdued activity in July and August as gold prices moved sideways.”
It said that volumes regained momentum in September when gold prices rallied again. This drove US trading volumes to a then all-time high of $138 billion (or 1,152 tonnes) a day, up 59% from August’s levels.
Volume momentum continued in October as the yellow metal reached its 50th new record high for the year, the Council said. Volatility as prices receded at the end of the month drove US trading volumes to a new peak of $208 billion (or 1,587 tonnes) per day, up 51% month on month.
