Gold demand has surpassed $100 billion (£77 billion) for the first time as investors flock to this safe-haven asset ahead of the U.S. election.
A report from the World Gold Council shows that global gold purchases surged by 35% year-on-year between July and September. During this period, the total gold weight purchased rose 5% year-on-year to 1,313 tonnes, with the price of gold hitting consecutive monthly highs.
The heightened demand reflects growing uncertainty surrounding the upcoming U.S. election on November 5 and intensified geopolitical tensions in the Middle East.
This surge drove the average price of gold on the London Bullion Market up 28% year-on-year for the quarter, peaking at a record high of $2,474 per ounce. Since January, gold prices have reached record highs on 30 occasions, rising again on Wednesday to a new peak of $2,779 per ounce.
Louise Street, senior markets analyst at the World Gold Council, noted a “fear of missing out” among investors.
Street commented, “Investors are eager to buy into the rising price momentum, spurred on by the potential for future interest rate cuts and viewing gold as a safe haven amid U.S. political uncertainty and escalating Middle East conflicts.”
Industry experts added that strong gold demand from Western traders has offset a recent dip in sales across Asia.
This geographical divergence reflects market bets on a Donald Trump victory in the U.S. election, with expectations that the Republican candidate would implement an inflationary economic agenda. Trump has pledged widespread trade tariffs, potentially up to 20% on all imports and as high as 60% on Chinese goods.
Economists warn this approach could increase goods prices, with Morgan Stanley projecting that such tariffs might add nearly a full percentage point to U.S. inflation.
Meanwhile, despite the gold price surge, oil prices have sharply declined in recent days after Israeli airstrikes avoided Iranian oil and gas infrastructure. Brent crude stood at $71.93 per barrel on Wednesday, down $9 since early October.
