Central banks and official institutions continued to strengthen their gold reserves during the third quarter of 2026, adding approximately 321 tonnes to their holdings, up 42% year-on-year. This marked the highest quarterly purchases since the fourth quarter of 2024, according to the World Gold Council.

Total central bank gold purchases reached 675 tonnes in the first nine months of the year, an increase of 6% compared with the same period last year, as official institutions continued to diversify their portfolios and strengthen their gold reserves against economic and financial risks.

Gold ETFs Attract Inflows of 211 Tonnes

Gold-backed exchange-traded funds (ETFs) attracted inflows of approximately 211 tonnes during the third quarter of 2026, lifting their holdings to a record 4,256 tonnes.

Meanwhile, over-the-counter (OTC) and other demand reached approximately 143 tonnes, compared with 101 tonnes in the same period last year, although it remained below the elevated levels recorded earlier in the year.

Retail Demand for Gold Bars and Coins Declines

Demand for gold bars and coins among retail investors fell by 19% year-on-year to 268 tonnes during the third quarter of 2026, as uncertainty over price trends discouraged some investors from buying.

China bucked this trend, with demand for gold bars and coins rising by 7% year-on-year.

High gold prices also weighed on global jewellery demand, which declined by 17% year-on-year to 313 tonnes as consumers shifted towards lighter, lower-carat pieces. Despite the decline in volumes, the value of global jewellery demand rose to USD 43 billion.

Artificial Intelligence Supports Technology Demand for Gold

Gold demand in the technology sector increased by 3% year-on-year to 85 tonnes during the third quarter of 2026, its highest quarterly level since the fourth quarter of 2021.

Demand from the electronics sector rose by 5% to 72 tonnes, supported by increased manufacturing linked to artificial intelligence technologies, which require gold in certain electronic components and applications.

Gold Mine Production Reaches a Record Third-Quarter Level

Total gold supply stood at approximately 1,369 tonnes during the third quarter of 2026, down 1% year-on-year.

Mine production, however, increased by 3% to a third-quarter record of 1,071 tonnes. Recycled gold supply fell by 8% to 314 tonnes despite higher prices, reaching its lowest level since the fourth quarter of 2023.

Gold Demand Outlook

Louise Street, Senior Markets Analyst at the World Gold Council, said gold demand during the third quarter was mixed, with a strong recovery in inflows into gold-backed ETFs. Geopolitical risks and concerns over fiscal discipline drove these inflows, strengthening institutional interest in gold.

She added that retail investors reduced their purchases amid uncertainty over the price outlook, while central banks remained a key pillar of global gold demand, supported by continued substantial buying by official institutions.

Street noted that gold’s outlook through the end of the year appeared balanced. Higher interest rates and diverging inflation expectations could weigh on the metal, while geopolitical risks and financial market tensions could encourage investors to increase their exposure to gold as a safe-haven asset.