Jewellery demand in Q3 of 2018 saw price-led year-on-year growth of 6%, as lower gold prices during July and August encouraged bargain hunting among “price-sensitive consumers”.
According to the latest report by the World Gold Council, growth in India and China was up 10% in each region, outweighed weakness in the Middle East which was down 12%. The group said lower gold prices saw retail investors “take refuge” in bars and coins, while jewellery purchases increased in India, China and across South-East Asia.
Alistair Hewitt, head of market intelligence at the World Gold Council, said: “The physical market responded quickly when the gold price breached $1,200/oz in August, with retail investors around the world diving into the market.
“And there are welcome developments in the central bank space. They’re buying a lot and we are seeing new central banks enter the market as they look to hedge their dollar exposure.”
He added: “The equity sell-off last week is a timely reminder of the threats stalking markets: valuations are stretched, debt levels are high, and rising rates and quantitative tightening pose risks that an allocation to gold can help hedge.”