In the long-term, sources of demand – jewellery, investment, central banks and technology – remain robust and diverse, Grubb added.
Central banks bought 93 tonne of gold in Q3 2014, (compared to 101.5 tonne in the same period last year) the 15th consecutive quarter that banks were net purchasers of gold.
In the entire year till the third quarter, central banks have bought 335 tonne of gold compared to 324 tonne in the same period last year.
This is due to continued diversification away from the US dollar and in the backdrop of ongoing geopolitical tensions.
People around the world buy gold for different reasons at different times, reinforcing the unique self balancing nature of the gold market. With recycling at a seven year low and mine supply looking increasingly likely to be constrained in the future, outlook for physical gold demand remains strong,” Grubb said.
During the quarter, the total supply fell by 7 per cent year-on-year to 1,048 tonne from 1,128.6 in the corresponding quarter of last year.
Recycling of gold also continued to abate, declining 25 per cent to 250 tonne compared to 333.7 tonne in the same quarter last year, the report added.
