Central banks are selling gold in Q3, the first time since 2010, according to the World Gold Council’s press release. Net sales of gold totaled 12.1 tons in Q3 compared to purchases of 141.9 tons a year earlier. Russia’s Central Bank started to sell gold first in the last 13 years. Central banks are selling gold to take advantage of near-record prices and soften the coronavirus pandemic’s impacts.

  • Inflows into exchange-traded funds (ETFs) have driven gold’s advance in 2020, but the easing appetite for ETFs in Q3 has slowed demand.
  • Gold demand fell 892.3 trillion in Q3, the lowest quarterly total since Q3, 2009
  • Demand for gold used in technology remained weak in Q3, declining 6% year over year at 76.7 trillion
  • Supply of gold declined 3% year over year as mine production remained depressed, even after the lifting of COVID-19 restrictions.
  • Gold peaked above $2,075 an ounce in August before falling to $1,900 in recent weeks.  
  • Central banks generated small net sales of gold in Q3, since Q4 2010 with Turkey and Uzbekistan  leading at 22.3 tons and 34.9 tons, respectively.
  • Uzbekistan is diversifying its international reserves away from gold, as the country unwinds decades of isolation.

Gold prices are falling. XAUUSD is down 0.54%