Global gold demand surged to its highest quarterly level on record in the third quarter of 2025, climbing 3% year-on-year to 1,313 metric tonnes, according to new data released by the World Gold Council (WGC) on Thursday.
The surge comes as investors turn to the precious metal amid heightened geopolitical tensions, US trade policy uncertainty, and growing “fear-of-missing-out” (FOMO) sentiment in the market.
Spot gold prices have jumped 50% since the start of the year, hitting an all-time high of US$4,381 a troy ounce on October 20, driven by safe-haven demand and speculation around lower US interest rates.
“The outlook for gold remains optimistic, as continued US dollar weakness, lower interest rate expectations, and the threat of stagflation could further propel investment demand,” said Louise Street, Senior Markets Analyst at the WGC.
“Our research indicates the market is not yet saturated,” she added.
Investment in gold bars and coins rose 17% during the quarter, led by strong demand from India and China, while physically backed gold ETFs saw inflows surge by 134%, reversing previous declines.
These gains more than offset a 23% slump in gold jewellery fabrication to 419.2 tonnes, as persistently high prices dampened consumer purchases globally.
Meanwhile, central banks increased their gold purchases by 10%, acquiring 219.9 tonnes in Q3. The WGC estimates total central bank buying reached 634 tonnes in the first nine months of 2025 — below the record highs of the past three years but still well above pre-2022 levels.
On the supply side, recycling volumes rose by 6%, and mine production increased by 2%, pushing overall quarterly gold supply to a new peak.
The WGC’s report underscores gold’s enduring role as a hedge against uncertainty and a store of value — particularly as global markets remain volatile heading into 2026.