Demand on gold has risen by 7% during the third quarter (Q3) of 2015 compared to the same period last year, Thomson Reuters reported in its GFMS Gold survey.
The survey attributed this surge to “the net official sector buying and a stellar level of retail purchases of bars and coins”.
The top consumer of gold during Q3 was India with 193 tonnes, marking a 5% year-on-year (YoY) increase. Thomson Reuters’ report stated that this was “the highest quarterly consumption since Q1 2011 and the highest third quarter demand since 2008”.
The report continued on India, saying that “gains in the third quarter were primarily attributed to the fall in the local gold price to the lowest since August 2011”.
“Gross official imports to India in Q3 2015 were 263 tonnes, up by 23% year-on-year and also the highest quarterly volume year-to-date,” it added.
The total consumption of India during the first nine month totalled 642 tonnes, while China’s consumption during the same period came in second with 579 tonnes.
Supply of gold from mines has inched up by 1% YoY during Q3 of 2015, while supply from scrap increased by 3%. Scrap increase was due to gains from Turkey and India, which were the only countries not experiencing a decline.
On the expected price of gold during Q4 of 2015, the report pointed out that prices are expected to reach $1,100/oz.