LONDON, Oct 31 Reuters Global gold demand excluding overthecounter OTC trading slipped 6 in the third quarter as central bank buying fell short of last year39;s record levels and consumption by jewellers declined, the World Gold Council WGC said on Tuesday.

The quarter39;s demand of 1,147.5 metric tons however stood 8 ahead of its fiveyear average, and official sector purchases in the full year are expected to approach their 2022 level, the WGC said in its quarterly demand trends report.

Gold demand shot to an 11year high in 2022 due to the biggest central bank purchases on record.

With geopolitical tensions on the rise and an expectation for continued robust central bank buying, gold demand may surprise to the upside, said Louise Street, senior markets analyst at the WGC.

Spot gold prices hit 2,009.29 an ounce on Friday, surpassing the key psychological 2,000 level for the first time since midMay, as investors piled into safehaven bullion amid the Middle East conflict.

Demand from investors, who see bullion as a safe asset during periods of instability, rose 56 in the third quarter, but remained weak compared to the fiveyear average, the WGC said.

Central bank demand totalled 337.1 tons, down from a record 458.8 tons a year before. For the first nine months of 2023 however, official sector gold purchases hit 800 tons, more than in any JanuarySeptember period in WGC data going back to 2000.

This strong buying streak from central banks is expected to stay on…