(Reuters) -Global gold demand rose by 3% year-on-year to 1,313 metric tons, the highest quarterly number on record, in the third quarter as investment demand soared, the World Gold Council said on Thursday.
Spot gold prices are up 50% so far this year after hitting a record high of $4,381 a troy ounce on October 20 on safe-haven demand driven by geopolitical tensions, U.S. tariff uncertainty and more recently a wave of fear-of-missing-out or “FOMO” buying.
“The outlook for gold remains optimistic, as continued US dollar weakness, lower interest rate expectations, and the threat of stagflation could further propel investment demand,” said Louise Street, senior markets analyst at the World Gold Council.
“Our research indicates the market is not yet saturated.”
Demand for gold bars and coins rose 17% in the third quarter, led by India and China, while inflows into physically backed gold exchange-traded funds jumped by 134%, said the WGC, an industry body whose members are global gold miners.
Together these categories offset a continuing sharp fall in gold jewellery fabrication, the largest category of physical demand, which fell 23% to 419.2 tons as high prices affected purchases by buyers all other the world.
Central banks, another major source of gold demand, increased purchases by 10% to 219.9 tons in the third quarter, the WGC estimated, based on reported purchases and its assessment of unreported buying.
Central banks have bought 634 tons in January-September, “trailing behind the exceptional highs of the last three years, but comfortably above pre-2022 levels,” the WGC said.
On the supply front, recycling added 6% and mine production increased by 2% in the third quarter, bringing the quarterly gold supply to a record high.
Gold supply and demand by WGC*:
Q3’24 Q2’25 Q3’25 Q3’25
change
y/y %
TOTAL SUPPLY 1,275.9 1,226.8 1,313.1 3
Mine production 957.6 904.3 976.6 2
Net producer hedging -6.5 -24.8 -8.0
Total mine supply 951.1 879.4 968.7 2
Recycled gold 324.9 347.4 344.4 6
TOTAL DEMAND 1,275.9 1,226.8 1,313.1 3
Jewellery fabrication: 546.6 355.6 419.2 -23
– Jewellery consumption 460.0 341.2 371.3 -19
– Jewellery inventory 86.6 14.4 47.8 -45
Technology: 82.9 78.6 81.7 -2
– Electronics 69.1 65.8 68.6 -1
– Other industrial 11.6 10.8 11.1 -5
– Dentistry 2.2 2.1 2.0 -7
Investment: 364.8 477.5 537.2 47
– Total bar and coin: 270.1 307.0 315.5 17
of which bars 198.8 243.3 237.1 19
of which official coins 31.6 38.9 31.7 1
of which medals 39.8 24.8 46.7 17
– ETFs/similar products 94.7 170.5 221.7 134
Central banks/institutions 199.5 172.0 219.9 10
Gold demand 1,193.8 1,083.8 1,257.9 5
OTC and other 82.2 143.1 55.2 -33
LBMA gold price ($/oz) 2,474.3 3,280.4 3,456.5 40
*Source: Metals Focus, ICE Benchmark Administration, World Gold Council.
(Reporting by Polina Devitt;Editing by Ronojoy Mazumdar)
