Central banks and other official institutions bought a net 321 tonnes of gold in the third quarter, according to the World Gold Council. Gold-backed ETF holdings also reached a record, while jewelry demand weakened.
Global central banks added more gold to their reserves in the third quarter than in any quarter since late 2024, according to the World Gold Council. Official institutions bought a net 321 tonnes from July through September, up 42% from a year earlier.
The council says portfolio diversification and risk management remain the main reasons behind the buying. Central bank purchases so far this year stand at 675 tonnes, 6% higher than over the same stretch last year.
ETF inflows return as retail holds back
Gold-backed exchange-traded funds also returned to inflows, adding 211 tonnes and lifting total holdings to a record 4,256 tonnes. Louise Street, senior markets analyst at the World Gold Council, said: "Gold ETF inflows came roaring back".
She tied the institutional interest to geopolitical risk and concerns around fiscal discipline. Retail investors, by contrast, held back amid uncertainty over the gold price outlook.
Demand is lower in tonnes but higher in value
Total gold demand slipped 1% from a year earlier to 1,369 tonnes, but its value jumped 22% to $188 billion as the gold price averaged $4,262 per ounce. Gold was trading at $4,130 an ounce at the time of writing.
Demand for gold bars and coins fell 19% to 268 tonnes, while jewelry demand dropped 17% to 313 tonnes, the weakest third quarter in the council's records. Technology demand, however, rose 3% to 85 tonnes, its highest quarterly total since late 2021, as AI-related manufacturing lifted electronics demand.
Outlook looks finely balanced
Street said the outlook for gold looks finely balanced through to the end of the year. Rising interest rates and mixed inflation expectations present potential headwinds, she said, while geopolitical risk and financial market stress may cause participants to seek stability in gold.
Source: The Daily Hodl
Trading involves risk.
Risk Disclaimer
