Central banks outpaced consumers in gold purchases during the third quarter of 2026, acquiring 321 metric tons compared to 313 tons bought for jewelry. This marks a significant shift from the previous year, when jewelry demand exceeded central bank purchases by 150 tons. The World Gold Council's report highlights that roughly 63% of official gold demand remained unreported, making it difficult to trace the exact buyers.
Despite a 22% increase in global gold demand to $188 billion, the actual volume of gold purchased dropped by 1%. The average price rose by 23%, absorbing much of the additional spending. Jewelry consumption fell by 17%, the weakest third quarter since 2000, as buyers in China and India adjusted their purchases to afford lower-carat or lighter pieces. Physical investment demand also declined by 19% to 268 tons.
Central banks and gold-backed ETFs helped offset weaker consumer demand, with net purchases rising by 42% to 321 tons and ETFs adding 211 tons. However, October saw a decline in both gold and Bitcoin prices, with gold falling by 6.3% and Bitcoin by 7.3%. The price of gold ended October at $3,913 an ounce, roughly 25% below its January peak.
The World Gold Council's central-bank survey revealed that 74% of respondents expected the US dollar's share of global reserves to decrease over the next five years. However, the dollar's share remained dominant at 56.7% in the second quarter. Reserve managers are increasingly viewing gold as a way to reduce reliance on other governments' currencies and debt, though its ability to hedge market risk varies depending on economic conditions.