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Investor urge for food for safe-haven property resulted in a file quarter for gold demand in Q3 2025, in response to the World Gold Council’s (WGC) newest report.
The WGC printed its Gold Demand Developments Q3 report on October 30, which clearly demonstrates that investor demand for gold is exploding as financial and geopolitical uncertainty continues to plague the markets.
Through the third quarter of this 12 months, the gold worth climbed by 16 p.c, setting new file highs 13 instances alongside the way in which. The WGC estimates a median quarterly worth of US$3456.54 per ounce, which is 5 p.c over the earlier quarter and 40 p.c increased than the typical in Q3 2024.
General, gold demand for Q3 2025 is up 3 p.c over the identical quarter final 12 months, with the worth of that demand up 44 p.c year-over-year to a file US$146 billion. That is regardless of demand for the yellow steel from the jewellery and expertise segments dropping 23 p.c and a pair of p.c, respectively, in comparison with final 12 months’s Q3 figures.
Buyers betting on gold as stagflation hedge
A lot of 2025’s gold demand development is due largely to the funding section, which year-to-date has reached 1,556 metric tons. That’s a mere 6 p.c of the file reached within the first three quarters of 2020. By way of greenback worth, buyers have bought US$161 billion in gold property within the first three quarters of the 12 months.
Investor sentiment is more and more leaning towards rising stagflation fears.
Talking to the Investing Information Community in regards to the Q3 Report, Joe Cavatoni, the WGC’s senior market strategist for the Americas, famous that in durations of stagflation there are rising prices, a lack of buying energy through a weakening greenback and no financial development, and that is what provides gold a robust place as a secure haven or a preserving asset.
The Federal Reserve’s financial coverage is creating a good setting for gold as properly.
“The reducing of charges once more lowers the chance price of holding gold in a portfolio,” he added. “So that you’re components which can be lining up for preservation of worth and buying energy towards fiat foreign money and gradual financial development.”
That’s why in 2025 buyers are piling into gold exchange-traded funds (ETFs), and including gold bars and cash to their portfolios at a file tempo, accounting for greater than half of whole demand in comparison with one-third final 12 months. In response, WGC has revised their 2025 gold funding demand forecast upward.
Gold ETFs rating strongest Q3 since 2020
Complete funding demand for gold in Q3 2025 got here in at 537.2 metric tons, up 13 p.c over Q2 2025 and 47 p.c from Q3 within the earlier 12 months.
Gold ETFs are the most important driver within the funding demand section by way of good points, having attracted loads of investor consideration in 2025. The third quarter was emblematic of this pattern, with gold ETF demand totalling 222 metric tons. That’s up 30 p.c over the second quarter and posting a whopping 134 p.c achieve over Q3 2024. By way of worth, the quarter introduced in a file US$24 billion in gold ETF inflows.
Cavatoni attributed the speedy development in ETF demand to the conclusion amongst Western buyers that danger and uncertainty are prevalent within the fairness markets now. He added that the WGC positively sees this pattern persevering with to form demand for gold ETFs.
12 months-to-date gold ETF inflows reached 619 metric tons at a worth of US$64 billion. Regionally, the three greatest markets for gold ETFs to this point this 12 months have been North America (346 metric tons), adopted by Europe (148 metric tons) and Asia (118 metric tons).
Regardless of increased costs for the dear steel, gold ETF inflows are nonetheless charging upward within the final quarter of the 12 months. And in response to the WGC report, “historic evaluation suggests gold ETFs nonetheless have room to develop.”
Gold bar and coin demand stays sturdy
Concern of lacking out, or FOMO, in response to the WGC, has induced buyers to proceed to scoop up gold bars and cash whilst costs for the steel skyrocketed in September. Therefore, the third quarter of 2025 at 315.5 metric tons of gold purchases represents the fourth successive quarter that this section of the market has seen demand ranges above 300 metric tons.
“This tells us that they see the use case for gold. Once they’re danger of their portfolio and so they’re diversification,” Cavatoni advised INN. “I feel you are really seeing people who find themselves fairly comfy placing giant quantities of cash to work. So, I feel it is actually talking volumes about the truth that the market’s obtained much more headroom to run, and the sentiment is indicating to us that individuals are not scared of those costs.
All advised, gold bar and coin demand in Q3 2025 was up 3 p.c over Q2 2025 and 17 p.c over Q3 2024.
Regionally, India was the brightest spot, accounting for 91.6 metric tons of gold bar and coin purchases within the third quarter with a file worth of greater than US$10 billion. India’s urge for food for gold bars and cash surpassed even China, for which the WGC reported 73.7 metric tons, up 19 p.c over the earlier quarter.
The WGC attributed a few of the elevated demand to “jewelry shoppers switching to lower-margin pure funding merchandise”. It is a phenomenon distinctive to Asia the place gold jewellery is historically a type of financial savings, wealth preservation and used for dowries.
On the flipside, america (7.2 metric tons) was the one regional market to expertise a year-overy-yea decline (64 p.c) in gold bar and coin demand. Nonetheless, Cavatoni was fast to level out that there was really loads of shopping for and profit-taking primarily based promoting occurring on this house within the third quarter. Shopping for accelerated in September following information that gold bars could be exempt from Trump tariffs, and that pattern has continued into October main the WGC to forecast a stronger This fall.
“I think [Q4 is] going to inform us a special story, which is that a lot of the bar and coin demand within the Western markets, significantly the US will present a shift into web buying,” defined Cavatoni.
Central banks stay web consumers of gold
Within the first 9 months of the 12 months, central banks purchased 633 metric tons of gold in comparison with the 724 metric tons added throughout the identical interval in 2024.
Though the tempo has slowed in current quarters, central financial institution shopping for continues to be a significant theme for the gold demand story. For Q3 2025, central financial institution inflows grew by 28 p.c over the earlier quarter to achieve 220 metric tons.
The central banks of Poland, China, Turkey, Kazakhstan and India proceed to be the predominant purchasers of gold. Curiously, the quarter additionally noticed a couple of individuals enter the house who had hitherto been on the sidelines. This consists of the central financial institution of Brazil (15 metric tons), which beforehand hadn’t made gold purchases since July 2021.
Cavatoni notes that central banks are nonetheless signalling they’re eager to strategically construct out their gold reserves regardless of file gold costs. “There’s commerce tensions, geopolitical tensions. There’s worry and questions over the US’ desired final result by way of sanctions and management,” he defined.
“There’s additionally a dependency on the greenback and the euro. In our annual survey, the central banks proceed to point to us that that dependency goes to decrease over the subsequent 5 years.”
Particularly, he emphasised that the central banks within the rising markets are in search of viable options to dollar-based property so as to diversify their reserves within the face of world and home challenges and they’re discovering that gold matches the invoice.
For these causes, the WGC has revised its expectations for gold demand from this section. It now sees central banks selecting up between 750 to 900 metric tons of gold for 2025.
Remember to comply with us @INN_Resource for real-time updates!
Securities Disclosure: I, Melissa Pistilli, maintain no direct funding curiosity in any firm talked about on this article.
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