Global demand for gold fell to its lowest level in eight years, the World Gold Council said Thursday.
Demand dropped 9 percent to 915 tonnes in the third quarter, the lowest since the third quarter of 2009, as jewellery buying fell and inflows into bullion-backed exchange traded funds (EFT) slowed sharply.
ETF inflows crashed by 87 percent to 18.9 tonnes in the quarter when compared to same period last year.
Gold-backed ETFs allow investment in gold without physical ownership.
Demand in the jewellery sector totalled 478.7 tonnes, marking a 3 percent annual decrease, the council said.
Central banks' official gold reserves rose 25 percent year-on-year to 111 tonnes, while bar and coin investments increased by 17 percent to 222.3 tonnes.
Global gold demand was 800.3 tonnes in third quarter of 2009.
Alistair Hewitt, head of Market Intelligence at the council, said it had been a "tough quarter for gold demand."
He highlighted increased buying by the Turkish and Russian central banks, increased gold use in technology and growing retail investment demand in China as "bright spots".
- TURKISH DEMAND RISES
Meanwhile, Turkish jewellery demand reached to 10.3 tonnes, growing by 11 percent due to dips in the local price of gold.
The year had "seen a strong recovery in spending on gold jewellery in Turkey," the council said in a report, with the value of year-to-date demand up 25 percent on 2016 at 4.3 billion Turkish liras ($1.1 billion).
The demand for gold bars and coins in Turkey reached 15 tonnes, almost three times higher than same period of 2016.
"President [Recep Tayyip] Erdoğan's pro-gold comments in November last year continued to lend support to the market," the report said.
"In addition, the government's Credit Guarantee Fund -- which guarantees loans to small- and medium-sized enterprises that could not otherwise get credit -- has boosted the economy and supported gold demand.
"Turkish gold demand was at its highest since 2013 on a year-to-date basis."
Russia, Turkey and Kazakhstan were "dominant buyers" in the third quarter of 2017, accounting for more than 90 percent of total gold purchases.
Russia's reserves reached 1,778.9 tonnes, accounting for 17 percent of total reserves.
Turkey bought 30.4 tonnes in the third quarter and increased its reserves to 167.4 tonnes as of September. Kazakhstan's reserves reached 185.3 tonnes.
