Global gold demand hits record high in Q3, driven by surging investment

Global gold demand reached an all-time high in the third quarter of this year, with both volume and value setting new records, according to a report released on Thursday by the World Gold Council.

Total gold demand rose 3 percent year on year to 1,313 tons during the July-September period, while the value of demand surged 44 percent to 146 billion U.S. dollars -- the highest ever recorded for a single quarter, the report showed.

It also said that in the first nine months of the year, total gold demand rose 1 percent to 3,717 tons, valued at 384 billion U.S. dollars, representing a 41 percent year-on-year increase in value.

Specifically, investment demand continued to lead the market, with global gold investment jumping 47 percent to 537 tons in the third quarter, accounting for 55 percent of total net demand, according to the report.

It added that gold ETFs were a major highlight, with global holdings up by 222 tons.

Physical gold investment also remained strong as bar and coin demand exceeded 300 tons for the fourth consecutive quarter.

The overall surge was driven by gold prices repeatedly reaching record highs.

COMEX gold futures rose from 3,307.7 U.S. dollars per ounce at the end of June to 3,873.2 U.S. dollars by the end of September, a 17.1 percent increase. The rally continued into October, with prices breaching 4,000 U.S. dollars and reaching an all-time high of 4,392 U.S. dollars on October 20.

Despite high prices, central banks continued to buy gold, with net purchases totaling 220 tons in the third quarter -- up 28 percent from the previous quarter and 10 percent higher year over year, according to the report.

In contrast, global jewelry demand fell to 371 tons, though the sector showed resilience in value terms, with jewelry consumption rising 13 percent to 41 billion U.S. dollars, the report showed.

A senior market analyst at the World Gold Council attributed the strong investment demand to heightened geopolitical tensions, persistent inflationary pressures, and global trade policy uncertainties.

Factors such as a weaker U.S. dollar, expectations of U.S. Federal Reserve rate cuts, and stagflation risks are expected to further support gold investment demand in the coming months.

The trilateral negotiations among Russia, the United States and Ukraine, aimed at ending the prolonged Russia-Ukraine conflict, are currently at a standstill, Russia’s military intelligence chief Igor Kostyukov said on Wednesday.

Also on Wednesday, Ukrainian President Volodymyr Zelensky indicated that he was open to a ceasefire with Russia, but said that he did not foresee progress in negotiations until the conflict in Iran is "closed" or a fundamental ceasefire is reached among the United States, Israel, and Iran.

In 2026, delegations from Russia, the United States and Ukraine have held three rounds of peace talks, with the first two taking place in Abu Dhabi on Jan. 23-24 and on Feb. 4-5, and the last one in Geneva on Feb. 17-18.