World Gold Council: Total global gold demand fell 1% year-on-year in the third quarter of this year

China News Service, Beijing, November 3 (Reporter Song Yusheng) The "Global Gold Demand Trends" report for the third quarter of 2026 released by the World Gold Council on the 3rd showed that the total global gold demand in the third quarter was 1,369 tons, a year-on-year decrease of 1%. The average price of gold this quarter was US$4,262 per ounce, and total gold demand in monetary terms increased by 22% year-on-year to US$188 billion.

In the third quarter, central banks and other official institutions added a net increase of 321 tons in gold reserves, a year-on-year increase of 42%, a new single-quarter high since the fourth quarter of 2024; reserve diversification and risk management remain the core driving factors for central bank gold purchases. Since the beginning of 2026, the central bank has purchased a total of 675 tons of gold, an increase of 6% compared with the same period last year.

Global physical gold ETFs returned to net inflows this quarter, in sharp contrast to the capital outflows in the second quarter. The total net inflows in the third quarter were 211 tons, only 6% lower than the strong inflow level in the third quarter of 2025, pushing the total gold ETF holdings to climb to 4,256 tons, a record high. OTC and other gold demand was 143 tons, higher than the 101 tons in the same period last year, but lower than the high level earlier this year.

Investment demand for gold bars and coins fell 19% year-on-year to 268 tons. Due to the lack of clear direction in gold price trends, individual investors generally adopt a wait-and-see attitude, leading to a fall in demand. The only obvious exception is the Chinese market, where investment demand for gold bars and coins increased by 7% year-on-year.

High gold prices continue to suppress demand for gold jewelry, with global gold jewelry demand falling 17% year-on-year to 313 tons, the lowest level in the third quarter of this data series. Consumers continue to turn to light-weight, low-purity gold jewelry products, but global gold jewelry demand is still slightly higher, reaching $43 billion.

Demand for technology gold increased by 3% year-on-year to 85 tons, reaching the highest level in a single quarter since the fourth quarter of 2021. Among them, driven by artificial intelligence-related manufacturing, gold demand in the electronics industry increased by 5%, reaching 72 tons.

Total global gold supply fell 1% year-on-year to 1,369 tons. Among them, gold mine output increased by 3% year-on-year to 1,071 tons, a record high in the third quarter of the year; despite the relatively high gold price, the supply of recycled gold fell by 8% year-on-year to 314 tons, the lowest level since the fourth quarter of 2023.

Louise Street, senior market analyst at the World Gold Council, believes that global gold demand overall showed a differentiated pattern in the third quarter. Geopolitical risks and market concerns about fiscal sustainability have driven institutional funds to return to gold ETFs; individual investors are more on the sidelines due to the uncertainty of gold price trends. Official institutions continue to carry out large-scale gold purchases, and central bank gold purchases remain an important pillar of gold demand.

"Looking ahead to the gold market before the end of the year, the positive and negative factors are roughly balanced. Although rising interest rates and divergent inflation expectations may put pressure on gold prices, the intersection of geopolitical risks and financial market pressure may prompt market participants to turn to gold in search of stability." (End)