Gold demand surged to record levels in Q3 2025, as investors flocked to the safe-haven asset amid mounting geopolitical tensions, a weakening US dollar, and fears of stagflation, the World Gold Council ( WFC ) says in its latest gold demand trends report.

Total quarterly demand, including over-the-counter ( OTC ) transactions, reached 1,313 tonnes, equivalent to US$146 billion, the highest on record. The bulk of the increase came from investment demand, which soared 47% year-on-year to 537 tonnes and accounted for 55% of total gold demand.

“Despite the strong price rises, we anticipate that central banks will continue their buying streak, supported by a forecasted growth in major EM countries’ FX reserves and previously dormant banks becoming active,” says Shaokai Fan, head of Asia-Pacific ( ex-China ) and global head of central banks at WGC.

Gold-backed ETFs played a major role in the demand, marking a third consecutive quarter of inflows. Investors added 222 tonnes globally, equivalent to US$26 billion. Asia saw its eighth straight quarter of growth, with holdings rising by 200 tonnes to 334 tonnes.

Bar and coin demand also surged, up 17% YoY to 316 tonnes. India ( 92 tonnes ) and China ( 74 tonnes ) were the key drivers, but Southeast Asia also posted robust figures. Singapore’s investment demand rose 47% YoY to 1.8 tonnes, while Indonesia, Malaysia, and Thailand all reported double-digit gains. Vietnam was the outlier, with demand slipping 3%. 

Jewellery consumption down 

In contrast, jewellery demand declined globally, impacted by record-high prices. Singapore's jewellery consumption fell 8% YoY to 1.4 tonnes, mirroring a global 19% drop. Even in India and China, seasonal Q3 gains could not offset broader weakness.  

Central bank activity remained resilient, however, with net purchases of 220 tonnes in Q3, up 28% from Q2 and 10% YoY. Year-to-date buying reached 634 tonnes.

Supply also kept pace with demand. Total gold supply in Q3 matched the 1,313-tonne demand figure, rising 3% YoY. Mine production rose 2% YoY to 977 tonnes while recycling activity grew 6% YoY to 344 tonnes.

“Gold’s climb towards US$4,000 an ounce in the third quarter underscores the strength and persistence of the factors that have been driving demand throughout the year,” says WGC senior markets analyst Louise Street. “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 adds.