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Gold plays an important role in the management of reserve assets, being one of the few assets that are widely approved under the investment guidelines used by the world's central banks.
Healthy retail demand in September drove the local price briefly into premium, but market dynamics generated a discount for much of the month. Indian gold ETFs witnessed a marginal net inflow of 0.4t in September as a domestic gold price correction enticed investors back into gold
The Shanghai Gold Price Benchmark PM (SHAUPM) in RMB rose by 0.5% in August while the LBMA Gold Price AM in USD saw a 2.6% fall. The average Shanghai-London gold price spread climbed further in the month, driven by stronger demand
Retail demand remained strong y‑o‑y during the first three weeks of May due to robust Akshaya Tritiya sales, wedding demand and the lower base period of 2021. But demand softened during the last week of the month due to a higher gold price and fewer auspicious marriage dates.
Gold prices fell in May. Primarily driven by negative momentum impacts as well as lower risk and uncertainty, the SHAUPM in RMB and the LBMA Gold Price AM in USD fell by 1.8% and 3.2% respectively in the month.
So far in 2022, central banks’ monthly gold reported activity has been bobbing between net purchases and sales linked to a fairly small number of banks. As such, any significant purchase or sale from those can tip the balance in a given month.
Since the Global Financial Crisis, it has been a turbulent ride for investors the world over. Europe has certainly been no exception: investors in the region have had to adapt to a high-risk environment. And as COVID-19 has introduced a new set of challenges to portfolio construction and return generation, robust risk management strategies are a top priority; wealth protection is as important as growth.
All-in Sustaining Costs (AISC) across the gold mining industry averaged US$1,123/oz in Q3’21, a rise of 4% q-o-q and the highest level since 2013. This is the fourth consecutive quarter of cost growth, with the average AISC up a significant 16% since the corresponding quarter in 2020.
Our latest Gold Demand Trends report takes a detailed look at the global gold market in the third quarter. The fact that gold demand so far this year is down 9%, while the average gold price over the same period was 4% higher, exemplifies gold’s diversification benefits, thanks to its varied roles as an investment, consumer good and a reserve asset.
Gold prices fell in September. The LBMA Gold Price AM in USD and the Shanghai Gold Benchmark Price (PM) in CNY declined by 4.6% and 4.3% respectively last month. The rising interest rate, outflows from global gold ETFs, and a stronger dollar all contributed to gold price weaknesses in September.
We’ve regularly discussed rates and inflation in 2021 as two key drivers of global markets. With lower expected future returns on fixed income, these drivers give credence to the idea that many institutional investors would need to move further out on the curve (take more risk) and/or use leverage to meet their financial obligations. Both of which now appear to be happening.
Today we’ve published our latest central bank statistics which now includes data for July. Central banks added a net 30.1 tonnes (t) to global official gold reserves during the month, virtually in line (+0.3%) with net purchases in June. This continues the healthy level of interest in gold we have seen from central banks so far this year.
Retail demand was mixed in June: moderate strength in the first half of the month was followed by a softening of demand in the second half due to an absence of wedding dates. Official imports rebounded with easing of lockdown restrictions and the local market flipped back to discount as demand softened from mid-July onwards
