Buyers clamour for gold-backed ETFs as central banks scale back purchases of the precious metal
Investors’ “fear of missing out” on gold’s rally has sparked record demand for the precious metal, even as high prices push central banks to scale back their purchases.
The value of global demand passed $100bn for the first time in the third quarter of this year, according to industry body the World Gold Council, driven mainly by investor buying. The volume of global gold demand also rose to a record in the same period, up 5 per cent to 1,313 tonnes.
The rush has helped drive the price of the yellow metal up 34 per cent this year and pushed it to a series of record highs, amid concerns about conflict in the Middle East and Ukraine, and as central banks diversify away from the US dollar and western economies start cutting interest rates. Gold prices hit a new high on Wednesday of $2,788 a troy ounce.
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