Joe Cavatoni: Gold Demand Hits Q3 Record, Western ETF Buyers Back in Action

Joe Cavatoni, senior market strategist, Americas, at the World Gold Council, spoke to the Investing News Network about Q3 gold demand trends and outlined what could drive the metal heading into the end of 2024.

Referring to the World Gold Council's latest report, he highlighted the return of western exchange-traded fund investors. With interest rates on the decline and geopolitical turmoil still strong, they've been more eager to buy.

"Overall holdings of gold in investment portfolios has been stable, but actually adding to gold allocations has required that opportunity cost, or that carrying cost, to come down for the investor in the western market, and that's what we're starting to see," Cavatoni explained during the interview.

Cavatoni also spoke about how the upcoming US election may impact gold, as well as other segments of demand for the yellow metal, including bar and coin demand, jewelry demand and technology demand.

"Where the election will have impact (for gold) is on how policies will develop," he said.

"That tends to show up six months or so post an election outcome when policies can be discussed, clarified and potentially start to be implemented. That's why we think that six months into the election outcome is when you're going to start to see more of an effect on the gold price," Cavatoni said, adding that there may still be short-term volatility.

Watch the interview above for more of his thoughts on gold market trends to watch right now.

Don’t forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.