Gold demand hit a record high in the third quarter, spurred by the metal’s price surge to all‑time highs amid geopolitical unrest. The World Gold Council reported that total demand grew 3 % year‑on‑year to 1,313 tonnes in the July‑September period, the highest volume since the council began tracking data about 25 years ago. The metal’s safe‑haven appeal was amplified by the Russia‑Ukraine war and the Israel‑Gaza conflict, creating an atmosphere of heightened uncertainty. Central banks also increased their purchases, coinciding with a series of record‑breaking price gains throughout the year.
Although gold’s price fell sharply after reaching an all‑time peak of $4,381.52 per ounce in October, analysts say the recent price support has helped sustain demand. In the third quarter, gold demand by value jumped 44 % year‑on‑year to a record $146 billion. The U.S. government shutdown and expectations of further Federal Reserve rate cuts have weighed on the dollar, further bolstering gold’s price. Exchange‑Traded Funds (ETFs) have attracted strong interest, offering investors exposure without trading on the gold futures market.
Conversely, the high‑price environment dampened jewelry demand, which dropped 23 % to 419.2 tonnes in the July‑September period—the lowest third‑quarter figure since 2020, when the COVID‑19 pandemic began. Despite the recent retreat to around $4,000 an ounce, analysts view the correction as a healthy pull‑back that clears short‑term speculative positions.
The World Gold Council’s data underscores the ongoing impact of geopolitical tensions on gold demand. As regional conflicts and trade disputes continue to generate uncertainty, investors are turning to gold as a safe‑haven asset. With ETFs providing an accessible investment option, gold demand is likely to remain strong in the coming months, and the recent price correction may attract new investors, potentially driving demand even higher.
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