Never miss a story from Martin Essex

Subscribe to recieve updates on publications
Please enter valid First Name
Please fill out this field.
Please enter valid Last Name
Please fill out this field.
Please enter valid email
Please fill out this field.
Please select a country

I’d like to receive information from DailyFX and IG about trading opportunities and their products and services via email.

Please fill out this field.

Your Forecast Is Headed to Your Inbox

But don't just read our analysis - put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk.

Your demo is preloaded with £10,000 virtual funds, which you can use to trade over 10,000 live global markets.

We'll email you login details shortly.

Learn More about Your Demo

You are subscribed to Martin Essex

You can manage your subscriptions by following the link in the footer of each email you will receive

An error occurred submitting your form.
Please try again later.

Talking Points

- Demand for gold fell in Q3 to an eight-year low but the market price barely moved after the figures.

- That suggests prices are firmly underpinned at current levels, helped by the weakness of the US Dollar.

What Does the Fourth Quarter Hold for Gold, Oil, Equities and Other Key Markets? Find out here

The price of gold continues to hold its ground despite data from the World Gold Council released Thursday showing that demand for the metal in the third quarter of the year fell to an eight-year low as exchange-traded fund inflows slowed sharply.

The price did ease back, but only after touching its highest level since October 20, helped by the current weakness of the US Dollar, which has been undermined by uncertainty about President Donald Trump’s tax-reform proposals. That points to fundamental support for gold despite the weak physical backdrop.

Chart: Gold Price, One-Hour Timeframe (October 18 – November 10, 2017)

Gold Prices Well Supported Despite Weak Physical Demand

Chart by IG

In its report on gold demand trends, the World Gold Council reported that the third quarter saw a 9% year/year drop in gold demand to 915 metric tons, with year-to-date demand down by 12%.Exchange-traded funds had another quarter of positive inflows but, at 18.9tonnes, they fell far short of the 144.3tonnes influx in the third quarter of last year. A softer quarter in the jewelry sector (-3%) accounted for 17tonnes of the year/year decline. Demand from other sectors firmed: central banks bought a healthy 111tonnes (+25% year/year) while bar and coin investment strengthened by 17% to 222.3tonnes, albeit from a low base.

Gold Prices Well Supported Despite Weak Physical Demand

--- Written by Martin Essex, Analyst and Editor

To contact Martin, email him at

Follow Martin on Twitter @MartinSEssex

For help to trade profitably, check out the IG Client Sentiment data

And you can learn more by listening to our regular trading webinars; here’s a list of what’s coming up

Check out our Trading Guides: Several new ones are now available including Forex for Beginners, Building Confidence and Traits of Successful Traders

Like to know about the Traits of Successful Traders? Just click here

Or New to Forex? That guide is here