Central banks' Q3 gold purchases surge 42% as costly bullion dampens jewellery demand, WGC says

The contrast in demand is significant for how gold prices are supported. Rather than chasing price swings, central banks buy consistently, so their stepped-up buying provides a base under gold that retail demand cannot.

Soft demand from jewellers and from bar and coin buyers suggests the rally has leaned more on official and institutional money than on households, leaving gold more exposed should fund inflows go into reverse.

Recycling has all but collapsed at these price levels, a notable sign that owners are hanging on to their gold instead of cashing in, reducing the supply available to the market.

Investors should balance the council's rosy projections against the fact that it is an industry body paid for by miners.

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Earlier:

• Gold trims advance after overnight Iran strikes; US midterms in focus

--- Central banks are piling into gold at a record-setting clip while households hold back because of prices, and that divide is now doing much to keep demand supported.

Summary:

• Central bank purchases in Q3 came to roughly 320 tonnes, 42% higher year on year, with the 2026 total at about 675 tonnes
• Overall demand stood near 1,370 tonnes, 1% lower, while year-to-date demand is level with the record pace of 2025
• Jewellery buying dropped 17%, the weakest third quarter in the series, even as spending increased 2%
• Demand for bars and coins declined 19%, while ETFs absorbed about 210 tonnes
• Mining production reached a third-quarter record, and recycling sank to its weakest in three years
• The average gold price in the quarter was roughly $4,260/oz, 23% above a year earlier

The World Gold Council said central banks sharply increased their bullion buying in Q3, countering a slump in jewellery and retail investment demand as expensive metal weighed on households.

Gold miners fund the World Gold Council, which published its quarterly Gold Demand Trends report. In the three months to September, the council estimated, central banks purchased roughly 320 tonnes, a 42% rise from a year earlier. That lifted their purchases so far this year to about 675 tonnes, 6% more than the same period of 2025.

Including over-the-counter trading, total demand came to about 1,370 tonnes, down 1% from a year earlier. At roughly 3,880 tonnes for the year so far, demand is running even with the 2025 record pace, and its value reached a record of about $566bn. Gold's quarterly average of around $4,260/oz was up 23% from a year earlier, the third-strongest quarterly average on record.

Expensive metal deterred cost-conscious purchasers. Jewellery consumption fell 17% to roughly 310 tonnes, the weakest third quarter in the council's data series. Spending on jewellery nevertheless rose 2% to about $43bn, as buyers paid more for less metal. Bar and coin demand dropped 19% to approximately 270 tonnes.

A measure of support came from exchange-traded funds, which absorbed around 210 tonnes and reversed the outflows of the second quarter, although inflows were 6% below their year-earlier level. Overall investment demand, combining funds, bars and coins, was down 14%.

On the supply side, mine output climbed 3% to a third-quarter record of roughly 1,070 tonnes, while recycling slid 8% to a three-year low. Recycling, the council said, has stayed largely unresponsive to high prices. Technology demand rose 3%, supported by AI-related electronics production.

For 2026, the council expects central bank buying to at least match last year's level. It sees investment demand staying resilient, jewellery volumes continuing to soften, and only modest supply growth, coming mainly from mines.