Central Banks Drive Gold Market as Private Buyers Retreat

Total purchases for the year now stand at 675 tons, a six percent increase over 2024. While sovereign institutions ramped up their holdings, individual investors remained hesitant. Global demand for bars and coins dropped 19 percent to 268 tons, as buyers in India and China reacted cautiously to the sustained high price environment. Jewelry consumption suffered even more, falling 17 percent to 313 tons—the lowest third-quarter figure since the World Gold Council began tracking the data.

Despite the cooling of retail interest, the financial sector showed signs of renewed activity. Gold-backed ETFs recorded 211 tons of inflows during the quarter, reversing the 47-ton outflow seen in the second quarter. The Council attributes this shift to mounting anxiety over public debt sustainability and persistent inflation. Meanwhile, industrial demand ticked up by three percent to 85 tons, bolstered by the manufacturing requirements of the artificial intelligence sector. With the gold price averaging $4,262 per troy ounce, the total value of global demand hit a record $566 billion, underscoring how price inflation has reshaped the market landscape.