Market Speaks: Global Gold demand down 1% on year in September quarter, mine output spikes 3%

World Gold Council or WGC stated in its latest Gold Demand Trends update that total Q3 gold demand, including OTC, was 1% lower y/y at 1,369 tonnes (t). On a y-t-d basis, demand of 3,881t virtually matches the 2025 record (3,884t), while value set a record of US$566 billion (bn). Central bank buying jumped to 321t in Q3, eclipsing recent typical quarterly buying levels and lifting y-t-d demand to 675t (+6% y/y).

Gold ETFs reversed course following the Q2 outflows, adding 211t in Q3. The inflow seemed to be driven by mounting concerns over fiscal sustainability and inflation, among other things. Bar and coin investors were more circumspect; global demand was 19% lower y/y at 268t as investors waited for a clearer price trend to emerge.

Jewellery demand fell 17% y/y to 313t, the weakest third quarter in our data series, as high prices remained a headwind across all markets. Demand value edged up 2% y/y to US$43bn. Gold used in technology increased 3% y/y in Q3 as demand generated by AI-related manufacturing more than offset the limiting effect of high gold prices.

It noted further that the LBMA (PM) gold price averaged US$4,262/oz in Q3. This was the third strongest quarterly average price on record and 23% higher y/y. Global gold mine production was up 3% y/y to 1,071t – a third quarter record. Total supply edged down 1% to 1,369t; recycling volumes fell 8% y/y to a three-year low of 314t. WGC stated that demand for ETFs, bars and coins to remain resilient, albeit caught in competing crosswinds. Central bank buying likely to at least match 2025 after surprisingly strong Q3. Jewellery volumes will continue to moderate amid persistently high prices. Accordingly, gold mine production remains the only likely area of – modest – supply growth.

Powered by Commodity Insights