Central banks and other official institutions added a net 321 tonnes of gold in the July-September quarter, 42% more than a year earlier, the World Gold Council said. Total demand slipped 1% to 1,369 tonnes as jewellery and bar buying fell.
At a glance
- Gold ETFs took in 211 tonnes in the quarter, lifting global holdings to a record 4,256 tonnes.
- Jewellery demand fell 17% to 313 tonnes, the weakest third quarter in council data going back to 2000.
- Mine output hit a third-quarter record of 1,071 tonnes, while average sustaining costs reached a record $1,930 an ounce in the second quarter.
Background
The World Gold Council publishes its Gold Demand Trends report every quarter, using data compiled by the consultancy Metals Focus. Central-bank figures include purchases that monetary authorities do not report themselves, which Metals Focus estimates from public data, trade statistics and field research. Gold ETFs are exchange-traded funds backed by physical gold. All-in sustaining cost (AISC) is a miner's cost per ounce, including the spending needed to keep mines running.
What happened
Central banks and other official institutions bought a net 321 tonnes of gold in the third quarter, the World Gold Council (WGC) said on Tuesday. That was 42% more than a year earlier and the highest quarterly total since the final quarter of 2024.
Official buying in the first nine months reached 675 tonnes, 6% more than in the same period last year. China and Poland were the largest disclosed buyers, adding 63 tonnes and 41 tonnes, while Russia sold 19 tonnes, Bloomberg reported. Almost two-thirds of the estimated buying was not disclosed by the central banks themselves.
Why central banks and funds bought
The WGC said portfolio diversification and risk management remained the main reasons for official buying. John Reade, the council's senior market strategist, said weaker gold prices during the quarter likely encouraged some central banks to buy more.
Reade added that the dollar's rally may have made gold more appealing to some central banks. Those that expect the dollar to weaken over the long term could swap expensive dollars for gold, he said.
Institutional investors also returned. Gold ETFs added 211 tonnes after outflows in the second quarter, and holdings rose to a record 4,256 tonnes. WGC analyst Louise Street said geopolitical risk and worries about fiscal discipline drove the inflows.
Where demand weakened
Retail buyers held back. Bar and coin demand fell 19% to 268 tonnes, though China bucked the trend with a 7% rise. Jewellery demand fell 17% to 313 tonnes as high prices pushed consumers toward lighter, lower-carat pieces.
Total demand, including over-the-counter trade, slipped 1% to 1,369 tonnes, while its value rose 22% to $188 billion. The gold price averaged $4,262 an ounce in the quarter.
On the supply side, mine output rose 3% to a third-quarter record, but recycling fell 8% to 314 tonnes. Street said the outlook to year-end is finely balanced, with rising interest rates a headwind and geopolitical and financial stress a possible support.
Our read
Outlook: bullish. Strong official buying and record ETF holdings support gold, though weak retail demand and rate-hike expectations limit the effect.
What to watch
- Monthly reserve data from China and Poland, the largest disclosed buyers.
- Whether gold ETF inflows continue while gold trades below $4,000 an ounce.
- US jobs data and Federal Reserve rate expectations, which affect the cost of holding gold.
For information only, not investment advice.
Gold price in India
metalscost.com India reference price as of 2026-11-05.
Detailed analysis
Timeline
- 2026-11-03: The World Gold Council publishes its third-quarter Gold Demand Trends report.
Demand Drivers
ETF inflows of 211 tonnes offset weaker jewellery and bar and coin demand at high prices.
Central Banks
Official buyers added a net 321 tonnes, the most since late 2024, citing diversification and risk management.
Mining Production
Mine output reached a third-quarter record of 1,071 tonnes, while recycling fell 8%.
What could lift prices
- Central banks bought 42% more gold than a year earlier.
- Gold ETF holdings rose to a record 4,256 tonnes.
What could weigh on prices
- Jewellery and bar and coin demand fell sharply at high prices.
- The WGC sees rising interest rates as a headwind for gold.
Country impact
| Country | Impact | Reason |
|---|---|---|
| China | High | China was the largest disclosed central-bank buyer and the only major market where bar and coin demand rose. |
| Poland | Medium | Poland's central bank added 41 tonnes in the quarter. |
| India | Medium | Indian gold prices follow global prices, and Indian demand fell in the quarter. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Central Banking | Positive | Official buyers added 321 tonnes, their biggest quarter since late 2024. |
| Jewellery | Negative | Global jewellery demand fell 17% to 313 tonnes. |
| Gold Mining | Neutral | Output hit a third-quarter record, but sustaining costs also reached a record. |
Who gains, who loses
- Gold ETF holders: Inflows of 211 tonnes lifted fund holdings to a record.
- Jewellers: Jewellery volumes fell to the weakest third quarter in the council's data.
Other ways this could play out
- If central banks keep buying at this pace, official demand could keep supporting gold below $4,000.
- If rate-hike expectations rise further, weak retail demand could weigh on prices.
Price risks
- Higher interest rates raise the cost of holding gold, which pays no interest.
- Retail investors may stay on the sidelines until the price trend is clearer.
Technical view
Price is mixed relative to its 20-period and 50-period moving averages, showing no clear trend alignment.
Computed from metalscost.com's own stored price history.
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