Gold demand remained steady in the third quarter of 2026, primarily driven by robust central bank purchases and renewed interest in gold exchange-traded funds (ETFs). Despite record-high prices, the market showed a clear divide between institutional investors, who increased their allocations, and retail investors and jewelry consumers, who held back.
John Reade, Market Strategist at the World Gold Council, joined CNBC Africa to discuss the factors behind this split. He highlighted that institutional investors are likely attracted to gold as a hedge against economic uncertainty, while retail buyers may be deterred by the high prices.
The sharp contrast in behavior between different investor groups suggests a complex dynamic in the gold market. Institutional investors appear to be focusing on long-term value, while retail investors may be waiting for a price correction before re-entering the market.
The outlook for gold remains uncertain, with central bank buying providing a strong foundation for demand. However, the reluctance of retail investors and jewelry consumers to engage at current price levels could limit further growth in the short term.