Global demand for gold surged to a record high in the third quarter of 2025 as prices soared amid mounting geopolitical tensions, according to data released Thursday by the World Gold Council (WGC).
Total demand rose 3% year-on-year to 1,313 tonnes between July and September, the highest quarterly volume since the WGC began tracking the data about 25 years ago. The precious metal, widely seen as a safe-haven asset, benefited from instability linked to the Russia-Ukraine war and the Israel-Gaza conflict.
“Various regional conflicts and growing trade tensions have created an atmosphere of heightened uncertainty, which is driving investors toward gold,” said Louise Street, a WGC analyst.
The surge, led by central bank purchases, coincided with a series of record highs in gold prices earlier this year. After peaking at $4,381.52 an ounce in October, prices have since eased due to profit-taking.
In value terms, global demand jumped 44% year-on-year to a record $146 billion in the third quarter, the report said.
Analysts noted that expectations of US Federal Reserve interest rate cuts and a weaker dollar have further supported gold prices. Investor appetite through exchange-traded funds (ETFs) also remained strong, offering exposure to gold without trading in futures markets.
However, the high-price environment has weighed on jewellery demand, which fell 23% to 419.2 tonnes, the lowest third-quarter level since 2020 during the COVID-19 pandemic.
Street described gold’s recent pullback to around $4,000 an ounce as “a healthy correction that helps wash out short-term speculative positions.”
AFP
