In the full year the WGC expects Indian demand to hold at around 650-750 tonnes, in line with a weak 2016. Chinese demand is seen at 850-950 tonnes.
Elsewhere, soaring stock markets also detracted attention from gold, the WGC said, denting interest in bullion-backed ETFs. ETF inflows totaled less than 19 tonnes in the last quarter, down from 144 tonnes a year earlier, outweighing a 17 percent rise in bar and coin investment to 222 tonnes.
Turkish consumer demand jumped 73 percent to 25.4 tonnes, though that was down quarter on quarter. It was also well short of accounting for a huge jump in Turkish gold imports in the period, to 115 tonnes from 17 tonnes a year earlier.
“We’ve seen an increase in exports as well,” Hewitt said. “One of the factors we have seen in as increase in trade between Turkey and the United Arab Emirates.”
A rise in Turkish central bank buying also fed into a rise in overall official sector demand, though it was driven chiefly by Russia. Russian gold reserves are up by almost 164 tonnes in the year to date, the WGC said, two-thirds more than Turkey‘s.
On the supply side, overall mine output was down 1 percent at 841 tonnes in the third quarter, while recycled gold supply dropped 6 percent to 315 tonnes.
Reporting by Jan Harvey, editing by David Evans