Beijing, Oct.30 (Xinhua) -- The total global gold demand in the third quarter of 2025, as shown in the "Global Gold Demand Trends Report" released by the World Gold Council, reached 1,313 tons, with a total demand value of $146 billion, setting a new record for gold demand in a single quarter.

The growth in gold demand has been mainly driven by investment demand. Gold investment demand surged to 537 tons in Q3, a year-on-year increase of 47% and accounted for 55% of the total net demand for gold in Q3. This growth momentum originated from the powerful combination of multiple factors: geopolitical uncertainties and volatility, the weakening trend of the US dollar, and the rising gold prices triggering investors' fear of missing out (FOMO).

Investors have continued to pile into physical gold ETFs for a third consecutive quarter, adding another 222 tons of holdings, with global inflows reaching $26 billion. From the beginning of 2025 to the third quarter, global gold ETF total holdings increased by 619 tons (about $64 billion), led by funds in the North America region (+346 tons), followed by funds in Europe (+148 tons) and Asia (+118 tons).

Physical gold bars and coins demand in Q3 increased by 17% year-on-year to reach 316 tons. Demand grew in almost all countries and regions, with two major markets, India (92 tons) and China (74 tons), contributing significantly to this growth.

On the other hand, the global gold jewelry demand was under pressure in Q3 due to the 50 times of new high break through of the international gold price this year, down 19% year-on-year. Although both the two major gold jewelry consuming markets in the world, India and China, achieved a ring-on-ring growth in Q3 due to seasonal factors, the year-on-year performance of the two countries’ gold jewelry demand was still weak.

Despite the record-high gold prices, global central banks accelerated their gold buying in the third quarter, purchasing a net total of 220 tons, a 28% increase from the second quarter and a 10% year-on-year increase. Looking at the first three quarters as a whole, the total net purchase of gold by global central banks reached 634 tons. Although this is lower than the exceptionally high values of the past three years, it is still significantly higher than the average level before 2022.

In addition, looking at the supply of gold, the report shows that the total global gold supply reached 1,313 tons in the third quarter of 2025, also setting a quarterly new high, up 3% year-on-year. Among them, the output of gold mines increased by 2% year-on-year to 977 tons; the supply of recycled gold increased by 6% year-on-year to 344 tons, remaining relatively stable against the backdrop of soaring gold prices.

“With gold prices climbing towards the $4,000/oz psychologically important level in the third quarter of 2025, it highlights that the various factors driving gold demand throughout the year remain strong and persistent. Geopolitical tensions, persistent inflationary pressures, and uncertainties in global trade policies have all contributed to the demand for safe-haven assets as investors seek to enhance the resilience of their portfolios,” said Louise Street, Senior Market Analyst at the World Gold Council.

Despite the recent decline of over $400 in gold prices in a week, from record highs, driven by factors such as profit-taking, Louise Street believes that the outlook for the gold market remains optimistic. The continued weakness of the US dollar, widespread expectations of rate cuts, and the risk of stagflation all contribute to further supporting gold investment demand. "The current market environment indicates that there is still room for gold to rise further. The market is not yet saturated, and the strategic value of gold allocation remains solid."

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