Gold Demand Near Record in Dollar Terms as Central Banks and ETFs Buy Together

Global gold demand is brushing up against record highs in dollar terms, even as the physical tonnage has cooled slightly. The World Gold Council’s Gold Demand Trends report for the third quarter of 2026, released on November 3, shows total demand of 1,369 tonnes, down 1% from a year earlier. But with the gold price averaging an unprecedented US$4,262 per ounce over the period, the value of that demand surged 22% year‑on‑year to around US$188 billion.

Two forces are doing the heavy lifting: central banks and exchange‑traded funds. Central banks bought a net 337 tonnes in the quarter, continuing a multi‑year push to diversify reserves away from the U.S. dollar and hedge against inflation and currency depreciation. Emerging‑market institutions were once again the most active buyers. At the same time, gold‑backed ETFs swung back to sizeable net inflows, lifting their collective holdings to a record 4,256 tonnes and underscoring renewed interest from institutional and wealth‑management investors.

Retail demand has been more mixed. High prices and tighter monetary policy have cooled jewellery purchases in big consumer markets such as India and China, even as Western investors rediscover gold’s appeal as a portfolio hedge amid volatile equities and lingering geopolitical tension. The Council argues that as long as inflation uncertainty and geopolitical risk remain elevated, gold is likely to retain a prominent role as a diversifier in global multi‑asset portfolios, regardless of the starting price level.