Physical demand for gold remains low and worrisome: according to markets analyst Thomson Reuters GFMS, quoted in a piece in Mining Weekly, demand for gold remained at “pitiful levels” for the third successive quarter, down 30% year-on-year in the three months to September 30.
The survey also pointed out that the gold market’s attention had shifted during the past quarter from Brexit to the US presidential election. “A Donald Trump victory could spark a rally to $1,400 – and maybe even to $1,500, in our view – while a win for Hillary Clinton would likely see prices ebb lower”, the analysts noted.
As a result of the decreased demand, jewelry fabrication was down 27% year-on-year at 409 tons in the third quarter. The two largest markets, India and China, saw yearly jewelry consumption down 41% and 27% respectively, despite an improvement in quarter-on-quarter demand.
As for the future, the firm predicts that gold is set to stay well above last year’s price lows as it continues to “comfortably” exceed $1,200/oz, with a potential low of $1,240/oz”.