Central-bank gold purchases rose sharply in the third quarter as physically backed ETFs returned to net inflows, but ETF buying remained below a year earlier and consumer demand declined, World Gold Council (WGC) data showed.
The council counted 1,368.6 tonnes of global demand, including over-the-counter transactions, 1% less than in Q3 2025. The LBMA PM benchmark averaged $4,262.20 per troy ounce in the quarter, up 23% from a year earlier; that figure is a quarterly average, not a current price. In a separate measure, the WGC valued demand at a record $566 billion for January through September.
Central banks and other official institutions made net purchases of 321.2 tonnes in Q3, a 42% increase year over year and above the five-year quarterly average of 227 tonnes. Buying through Sept. 30 totaled 675 tonnes, up 6%. Only 120 tonnes of Q3 purchases were officially reported; the council estimated that unreported buying represented about 63% of the total. China and Poland led disclosed purchases, at 63 tonnes and 40 tonnes, respectively. The WGC said reserve diversification and risk management are the main reasons central banks buy gold.
Physically backed gold exchange-traded funds (ETFs) added 211.2 tonnes during Q3 after net outflows in Q2, but the quarter’s total was still 6% below Q3 2025. Holdings reached a record 4,256 tonnes, and inflows had a record quarterly value of $31 billion. The WGC said investors continued adding gold exposure as yields and the U.S. dollar strengthened; concern over government finances and broader uncertainty helped sustain interest.
Bar-and-coin demand dropped 19% to 267.8 tonnes, while jewelry consumption fell 17% to 312.9 tonnes. The council linked jewelry’s contraction to high prices and said buyers were opting for lighter pieces with less gold content.
The size of gold’s retreat varies by benchmark and date. The WGC’s October table showed a January LBMA PM high of $5,405 an ounce and an Oct. 30 price of $3,913, a 28% decline by calculation. Its commentary separately described the drop as about 25%.
The council’s October assessment was mixed: gold was well below its 200-day average and the dollar had strengthened, but speculative positions remained elevated. It said the recovery case was not yet complete. The WGC expects central-bank buying for 2026 to at least match 2025 levels and investment demand to finish about 200 tonnes above last year. “The outlook for gold looks finely balanced through to the end of the year,” said Louise Street, senior markets analyst at the World Gold Council.
