KEY POINTS
- Central banks added 321 tonnes of gold in the third quarter, a 42% annual increase.
- Gold-backed ETFs attracted 211 tonnes as investors sought safety amid economic and geopolitical risks.
- High prices weakened jewellery and retail investment demand, while the WGC expects investment to drive gold demand growth in 2026.
Global gold demand declined by 1% year-on-year to 1,369 tonnes in the third quarter of 2026, despite a sharp increase in the value of purchases, according to the World Gold Council (WGC).
The council’s latest Gold Demand Trends report showed that the average gold price reached $4,262 an ounce during the quarter. Consequently, the total value of gold demand climbed by 22% year-on-year to $188 billion.
The figures point to a market increasingly shaped by institutional investment and central bank purchases, even as elevated prices discouraged some individual consumers from buying physical gold and jewellery.
The WGC said uncertainty surrounding the global economy, geopolitical tensions and concerns about government finances continued to influence investor behaviour.
Central Banks Increase Gold Purchases
Central banks and other official institutions purchased a net 321 tonnes of gold during the third quarter, representing a 42% increase compared with the same period in 2025.
The quarterly total was the highest since the fourth quarter of 2024, reinforcing the role of central banks as a major source of support for the gold market.
Cumulative purchases for the first nine months of 2026 reached 675 tonnes, up 6% from the corresponding period a year earlier.
According to the WGC, central banks have continued to diversify their reserves and manage financial risks by increasing their exposure to gold.
Louise Street, senior markets analyst at the WGC, said the strategic factors underpinning central bank purchases remained intact. She added that the council’s annual surveys and discussions with central banks indicated that the trend was likely to continue into the fourth quarter.
The WGC has consequently raised its full-year expectations for central bank demand, projecting that purchases will at least match the 2025 level.
Investment through physically backed gold exchange-traded funds (ETFs) recovered strongly during the third quarter after recording a different trend in the preceding three months.
The funds attracted 211 tonnes of gold during the period, only 6% below the strong inflows recorded in the third quarter of 2025. Total ETF holdings subsequently rose to a record 4,256 tonnes.
The recovery reflected renewed interest from institutional investors seeking protection against geopolitical uncertainty, inflation risks and concerns about the sustainability of government finances.
Street said uncertainties in the global economy had supported investment activity, particularly in the ETF market.
Although the geopolitical risk index eased somewhat during the quarter, she noted that geopolitical concerns remained elevated by historical standards and could quickly intensify, prompting further investment in gold.
Over-the-counter transactions and other forms of gold demand also strengthened, rising to 143 tonnes from 101 tonnes a year earlier. However, this remained below the elevated levels recorded earlier in 2026.
