Gold Demand Hits Record Highs as Bitcoin Price Climbs

Gold's demand has surged, driven by investor FOMO, with global interest exceeding $100 billion in the third quarter—setting a historic record.

This increase reflects a shift in perception, with investors viewing both gold and Bitcoin as safe havens amid economic uncertainty. Gold demand rose by 5% to 1,313 tonnes, and its price skyrocketed by 34% this year, reaching $2,788 per troy ounce.

The World Gold Council reported a rebound in gold-backed ETFs after nine quarters of outflows, with inflows totaling 94 tonnes. Total investment demand for physical gold doubled to 364 million tonnes this quarter, fueled primarily by wealthy families and institutional investors.

In contrast, central bank gold purchases fell by 49% year-on-year to 186 tonnes, the lowest in two years, largely due to high prices. Meanwhile, jewelry demand, accounting for 40% of global gold use, decreased by 7% in Q3.

As Bitcoin approaches its all-time high, retail interest remains low, with Google Trends indicating a mere 23 out of 100 in search interest. Although the Coinbase app has seen a recent ranking boost, retail activity is not yet at past rally levels. However, Bitcoin is gaining traction in Europe, breaking its March ceiling against the euro and benefiting from the weakness of various fiat currencies, showcasing its potential as a hedge against declining traditional currencies.