LONDON: Global demand for gold soared to a record high in the third quarter of 2025, as investors turned to the precious metal amid mounting geopolitical tensions and economic uncertainty, according to a report released by the World Gold Council (WGC) on Thursday.
The WGC data showed that total demand rose 3 percent year-on-year in the July–September period, reaching 1,313 tonnes—the highest level since the organization began tracking such data around 25 years ago.
Analyst Louise Street from the WGC told AFP that “regional conflicts and rising trade tensions have created an atmosphere of heightened uncertainty, which continues to drive investors toward gold as a safe-haven asset.”
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The surge in demand, largely fueled by central bank purchases, came as gold prices repeatedly hit new records this year, peaking at $4,381.52 per ounce in October before a slight decline due to profit-taking. In value terms, gold demand soared 44 percent year-on-year to $146 billion, marking another record high.
Analysts say that factors such as the US government shutdown and expectations of interest rate cuts by the Federal Reserve—which have weakened the dollar—have provided additional support for gold prices. Meanwhile, Exchange-Traded Funds (ETFs) have seen significant inflows as investors seek exposure to gold without engaging in futures trading.
However, the high prices have dampened jewellery demand, which fell 23 percent to 419.2 tonnes, the lowest third-quarter figure since 2020, when the COVID-19 pandemic disrupted global markets. Street described the recent pullback in gold prices to around $4,000 an ounce as “a healthy correction” that helps stabilize the market.