Despite a sharp price correction of nearly USD 500 from its record high on October 20, Gold’s status as a safe-haven asset remains intact, according to Commerzbank commodity analyst Barbara Lambrecht. The latest data from the World Gold Council (WGC) highlight exceptionally strong investor interest during the third quarter, pushing total demand for the precious metal to a record level.
Central Bank Purchases Jump 28% Quarter-on-Quarter
Investor demand surged, with ETF inflows of 222 tons and bar and coin purchases exceeding 300 tons, according to the WGC. When combined with the “OTC and Others” category, this pushed total gold demand to new highs.
Commerzbank noted that the favorable investment climate is likely to keep interest strong, despite Federal Reserve Chair Jerome Powell’s recent remarks tempering expectations for a December rate cut.
Central banks also played a major role, boosting gold reserves by 220 tons in the third quarter — 28% higher than in Q2 and 10% above last year’s figure. Notably, around two-thirds of these purchases were unreported, suggesting discreet accumulation. For 2025, the WGC expects central banks to buy between 750 and 900 tons of gold — slightly below the past three years but still above any annual total before 2022.
Jewelry Demand Remains Subdued
High gold prices continue to weigh on jewelry demand, which, despite a modest quarterly uptick, remains below last year’s levels for the sixth straight quarter.
While Chinese demand has held relatively firm, India saw a sharp 31% decline year-on-year, with consumption falling to 118 tons, the lowest third-quarter level since 2020.