Global gold demand surged to its highest level on record in the third quarter of 2025, according to the latest World Gold Council (WGC) report. Total demand, including over-the-counter (OTC) transactions, reached 1,313 tonnes, worth around US$146 billion.
Investment Drives Record Gold Demand
The main driver behind this surge was a strong rise in investment demand. In Q3 2025, gold investment jumped by 47% year-on-year to reach 537 tonnes, accounting for over half of total demand. This sharp increase was fueled by global uncertainty, market volatility, a weaker US dollar, and investor fear of missing out as prices climbed.
ETF Inflows Continue for Third Consecutive Quarter
Physically backed gold ETFs continued to attract investors for the third straight quarter. Global inflows totaled 222 tonnes (about US$26 billion) during the quarter. So far this year, ETFs have added 619 tonnes (US$64 billion) to their holdings. North American funds led the growth with 346 tonnes, followed by European (148t) and Asian funds (118t).
Bar and Coin Demand Remains Strong
Investment in gold bars and coins also grew strongly, rising 17% year-on-year to reach 316 tonnes. India and China led this demand, contributing 92t and 74t respectively, as investors sought physical gold amid global uncertainty.
Jewellery Demand Slows Amid High Prices
While investment soared, gold jewellery demand declined due to record-high prices. Global jewellery consumption dropped 19% year-on-year in Q3. However, both India and China saw a small quarter-on-quarter recovery due to seasonal buying, although overall yearly demand remained weak.
Central Banks Boost Gold Purchases
Central banks remained key players in the gold market. Their net purchases reached 220 tonnes in Q3, up 28% from Q2 and 10% higher than a year earlier. Despite elevated prices, central banks continue to diversify reserves away from the US dollar. Year-to-date buying stood at 634 tonnes, above pre-2022 averages but slightly below the exceptional levels of the last three years.
Gold Supply Also Reaches Record High
Total gold supply matched the demand record at 1,313 tonnes, up 3% from a year earlier. Mine production increased by 2% to 977 tonnes, while recycling activity grew by 6% to 344 tonnes, supported by the soaring price environment.
Conclusion
The World Gold Council’s Q3 2025 report highlights a year of strong investment-led demand, driven by economic uncertainty, rising geopolitical risks, and a weaker dollar. With ETFs and central banks continuing to accumulate gold, the yellow metal remains a preferred safe-haven asset for global investors heading into 2026.
Source: World Gold Council, Q3 2025 Gold Demand Trends Report
