Global gold demand reached 1,369 tonnes in the third quarter, with the average price standing at $4,262 per ounce. Demand by value rose 22% year over year to $188 billion. Central banks and official institutions recorded net gold purchases of 321 tonnes during the quarter, up 42% year over year and the highest quarterly total since the fourth quarter of 2024. The People’s Bank of China was the largest disclosed buyer, adding 63 tonnes during the quarter, followed by the National Bank of Poland with 40 tonnes. Reserve diversification and risk management continued to drive central banks to accelerate their gold purchases.
Physically backed gold ETFs worldwide returned to net inflows in the third quarter, bringing in a combined 211 tonnes and pushing total holdings to a record 4,256 tonnes. European funds led the increase, while North America fully reversed its weak performance in the first half of the year. China’s gold ETFs recorded net inflows of RMB 26 billion. Geopolitical risks, concerns about fiscal sustainability, and falling stock markets together boosted safe-haven demand among institutional and individual investors.
High gold prices continued to weigh on consumer demand. In the third quarter, global gold jewellery consumption fell 17% year over year to 313 tonnes, the lowest third-quarter figure in the World Gold Council’s records. Although Chinese gold jewellery demand rebounded quarter over quarter from the seasonal low, it was still down 22% year over year. The additional costs from VAT on gold and weak consumer confidence together led to a divergence: demand fell in volume terms, while spending edged up.