Even though the gold price paused its rally in October and entered a consolidation phase, the yellow metal continues to impress with strong fundamental data. As the World Gold Council (WGC) recently reported, total gold demand, including OTC, rose by three percent to 1,313 tons compared to Q3 2024. This figure also represented the highest quarterly total recorded since the WGC began collecting data.
While the physical figures were already extremely impressive, they were significantly surpassed by the increase in value, as the value of gold purchased in Q3 2025 rose by 44 percent compared to the previous year’s quarter, reaching a new record of $146 billion. Key drivers for this increase, in addition to continued central bank purchases, were the purchases of listed ETFs and the acquisition of gold coins and bars by private and institutional investors.
Over the past twelve months, the World Gold Council observed gold demand totaling 3,717 tons, equivalent to $384 billion. Compared to September 30, 2024, investors bought “only” one percent more gold, but it was 41 percent more expensive than a year earlier.
Exchange-Traded ETFs are Only Now Catching up to Gold
Purchases of exchange-traded ETFs and ETCs saw a particularly strong increase in the third quarter, rising to almost 222 tons. Demand for coins and bars also remained consistently high at 315.5 tons. In this segment, the World Gold Council has now recorded exceptionally high sales for the fourth consecutive quarter.
While demand for physical gold for investment purposes fluctuates, it does so far less than the demand from exchange-traded funds. For example, in Q3 2024, this demand was only 94.7 tons, but it surged to 221.7 tons this year. This increase is all the more remarkable given that the average gold price in Q3 2024, at $2,473.3, was almost $1,000 lower than in Q3 of this year, when the WGC determined an average gold price of $3,456.5.
Central bank gold demand also remained at a high level. They purchased a total of 220 tons of gold in the third quarter, representing a 28 percent increase compared to the second quarter. However, central banks will not reach last year’s record sums this year. While 724 tons of gold were purchased by central banks in the first nine months of 2024, this year saw “only” 634 tons, which still represents an exceptionally high figure.
High Gold Prices Only Deter Jewelry Buyers
The impact of the sharply increased gold price is particularly evident in the demand from the jewelry industry. Its demand has now been declining for the sixth consecutive quarter. Compared to the previous year, the WGC recorded a double-digit decline to 371 tons. However, looking at the value of gold purchased, a different picture emerges, as the World Gold Council’s statisticians recorded a value increase of 13 percent to $41 billion.
Such price sensitivity is not found in technological applications. Here, the figures, similar to those in dental technology, deviate only slightly from those of the previous year. The electronics industry remains the strongest consumer in this segment, with a demand of 68.5 tons. It uses small quantities of gold in mobile phones, computers, and other circuits. However, its use there is so crucial that gold continues to be ordered in the same quantities regardless of price. Thus, whether more or less gold is demanded by the electronics sector depends not on the price of gold, but primarily on the number of electronic devices sold.
A total gold demand of 1,313.1 tons, representing a new quarterly record, was met by mine production of 976.6 tons. As in previous years, mine production traditionally increased in the third quarter this year. However, the two percent increase does not indicate that gold producers have already responded to the significantly higher gold price with a substantially increased gold production.
The gold supply from mines was supplemented by recycled gold. Its share, at 344 tons, remained one percent below the previous year. The World Gold Council explains the slight decline in recycled gold by the fact that much scrap gold was initially held back due to the hope of a further increase in gold prices.
