Weakening gold prices drove the demand for investments into this metal in third quarter. This demand was however restricted by selloff among gold-backed exchange-traded funds, Reuters reports.

Gold price fell almost 5% in third quarter, as investors preferred US dollar and higher risk assets.

Holdings of ETFs fell by 4% to 2221 tons by the end of third quarter compared with 2312 tons in previous period. Net outflow was $3,5 billion.

Global physical demand gained 8% to 1010 tons. Demand for coins rose by 20% to 73 tons from second quarter, while demand for bars fell to 175 tons from 176 tons. Jewelry consumption fell by 2% to 466 tons.

Supply in third quarter was 1118 tons, which is 3% higher than in second quarter.

Analytics estimate average gold price at $1224 per ounce in the last quarter of this year and $1285 in 2018 as a whole.