Central banks and investors drive gold to an unprecedented $146 billion increase in the third quarter of 2025

Gold demand worldwide soared to an all-time high in the third quarter of 2025, propelled by strong investment inflows and significant central bank acquisitions, as detailed in a

. The total demand reached 1,313 metric tons, marking a 3% rise from the previous year, while the value of this demand surged 44% to $146 billion—the largest quarterly figure ever recorded by the WGC. This increase was largely due to a 47% jump in investment demand year-over-year, with ETF inflows alone totaling $26 billion and purchases of physical bars and coins increasing by 17%, according to a .

Gold prices set a new record in October, reaching $4,381 per troy ounce, and climbed 16% over the quarter, with an average price of $3,456.54 per ounce. Experts point to ongoing geopolitical conflicts, uncertainty over U.S. tariffs, and a "fear of missing out" (FOMO) among investors seeking safe assets as key factors behind the rally, as reported by a

. Louise Street, a senior market analyst at the WGC, commented that "the market still has room to grow," predicting that ETF inflows and central bank buying will likely remain robust amid a weakening dollar and persistent stagflation concerns, according to the .

Central banks accelerated their gold purchases in Q3, acquiring 220 tons—28% more than the previous quarter and 10% higher year-over-year. Although this was slower than the 724 tons bought during the first nine months of 2024, the WGC noted that central banks globally have added 634 tons so far this year, underscoring a long-term diversification trend. In contrast, jewelry demand continued its downward trend, dropping 19% year-on-year to 371 tons as elevated prices discouraged buyers.

Supply also reached a new peak at 1,313 tons, fueled by a 2% uptick in mining output and steady levels of recycled gold. However, recycling activity was somewhat restrained by expectations of further price increases and a favorable economic backdrop. On the investment side, over-the-counter (OTC) demand contributed an additional 55 tons in Q3, indicating ongoing interest from institutional investors and wealthy individuals, especially in September.

The WGC’s analysis is consistent with wider economic patterns. Over the past two years, central banks worldwide have implemented 312 interest rate cuts, which has reignited appetite for risk assets such as

and gold, as noted in a . The crypto M&A surge in Q3 2025, hitting $10 billion, further highlighted a move toward alternative value stores as investors adapted to a low-rate landscape.

Although there are worries about gold’s recent retreat from its peak, Street remains positive, describing the pullback as "a healthy correction" for an asset with "solid underlying fundamentals." The WGC anticipates that investment demand will stay strong, with central bank buying and ETF inflows expected to more than compensate for declines in jewelry and industrial demand.

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