Global gold demand hit an all-time high in the September quarter as investors piled into exchange-traded funds (ETFs) and bullion, seeking safety amid geopolitical volatility and economic uncertainty, according to the World Gold Council (WGC)'s Gold Demand Trends Q3 2025 report.
Including over-the-counter transactions, total demand rose 3% year-on-year to 1,313 tonnes, the highest quarterly total in the Council’s data series. In value terms, demand jumped 44% to US$146 billion, driven by record investment flows and a 16% quarterly rise in the gold price to an average US$3,456.54/oz, up 40% from a year earlier.
The lift was fuelled mainly by investment activity, which climbed 47% year-on-year to 537 tonnes and accounted for more than half of total demand during the quarter.
ETF inflows dominate
Physically backed ETFs absorbed 222 tonnes during the quarter — their third consecutive rise — lifting year-to-date inflows to 619 tonnes (US$64 billion). North American funds led with 346 tonnes, followed by Europe (148 tonnes) and Asia (118 tonnes).
Bar-and-coin investment also strengthened, up 17% to 316 tonnes, led by India (92 t) and China (74 t). Central banks purchased 220 tonnes, a 28% quarter-on-quarter rise, continuing a steady multi-year accumulation despite record prices.
“Gold’s climb towards US$4,000/oz in the third quarter underscores the strength and persistence of the factors that have been driving demand throughout the year,” said Louise Street, senior markets analyst at the WGC.
“Heightened geopolitical tensions, stubborn inflationary pressures and uncertainty around global trade policy have all fuelled appetite for safe-haven assets as investors look to build resilience in their portfolios.
“The outlook for gold remains optimistic, as continued US dollar weakness, lower interest rate expectations and the threat of stagflation could further propel investment demand,” Street added. “Our research indicates the market is not yet saturated, and the strategic case to hold gold remains firmly in place.”
Jewellery weakens but value climbs
Jewellery consumption fell 19% y/y to 371 tonnes, the weakest third-quarter reading since 2020, as prices hit new highs. Yet in value terms, demand rose 13% to US$41 billion. India and China both recorded sequential gains but remained below year-earlier levels.
Technology demand eased slightly to 82 tonnes, with strong AI-related fabrication offset by weaker consumer electronics.
On the supply side, total availability rose 3% to a record 1,313 tonnes, supported by 2% higher mine output (977 t) from ramp-ups in Canada, Ghana and Australia. Recycling supply was stable at 344 tonnes, restrained by expectations of further price gains.
Australian demand rises 12%
In Australia, investment demand for gold bars and coins jumped 30% year-on-year, offsetting a 10% drop in jewellery consumption and lifting total gold use 12% to 5 tonnes.
“Australian investment demand for physical bars and coins rose 30% y/y … signalling a deepening strategic interest in gold among Australian investors,” said Shaokai Fan, Head of Asia (ex-China) and Global Head of Central Banks at the WGC.
“Quarterly jewellery demand in Australia fell 10% year-on-year, around half the global rate of decline (-19%), indicating a comparatively resilient local jewellery market.”
ETF investment has also surged, with Australian gold-backed funds adding more than 7.2 tonnes so far this year. Assets under management reached US$6.1 billion (over A$9 billion), representing 49.6 tonnes in total holdings.
“The surge in global ETF holdings marks a major structural demand wave for gold,” Fan said. “Despite the recent pull-back, we believe gold’s fundamental drivers will continue to support its accumulation in portfolios.”
The Council expects momentum to persist through year-end as US dollar weakness, geopolitical risks and lower-rate expectations continue to support investment flows. Jewellery demand, by contrast, may stay subdued until prices stabilise.
“Gold has set record after record this year, and the current environment suggests there could be more upside gains for gold,” Street said.