Central Banks Add 321 Tonnes to Gold Reserves in Third Quarter
Key Facts
Central banks and official institutions added a net 321 tonnes to their gold reserves in the third quarter of 2026, up 42% year on year, according to a World Gold Council report published on November 3. That was the highest quarterly total since the fourth quarter of 2024 and exceeded the five-year average quarterly demand of 227 tonnes. Official purchases from the start of the year through the end of September reached 675 tonnes, up 6% from the same period last year. The council said portfolio diversification and risk management remained the main drivers of official demand. This coincided with a decline in jewellery consumption and an increase in the value of total demand in a market affected by elevated prices.
Reported data show only part of official purchases: disclosed net buying was 120 tonnes, compared with estimated total demand of 321 tonnes for the quarter, while unreported activity accounted for about 63% of demand. China and Poland led disclosed additions, together adding 104 tonnes, equivalent to about 86% of disclosed net purchases. The People’s Bank of China increased its reserves by 63 tonnes, while the National Bank of Poland added 40 tonnes. Kazakhstan and Uzbekistan also reported adding 14 tonnes each. Russia, by contrast, recorded a decline of 19 tonnes, the largest reported reduction during the quarter.
On the investment side, physically backed gold exchange-traded funds recorded inflows of 211 tonnes in the third quarter, lifting holdings to a record 4,256 tonnes. Inflows were only 6% below the strong level recorded in the third quarter of 2025. The World Gold Council attributed some of the flows to growing concerns about fiscal sustainability and inflation. In the broader market, total gold demand, including over-the-counter trading, fell 1% year on year to 1,369 tonnes. But the value of that demand rose 22% to $188 billion, as the average evening LBMA Gold Price rose to $4,262 an ounce, up 23% year on year.
Global gold jewellery consumption, by contrast, fell 17% year on year to 313 tonnes, its weakest third quarter in the council’s data series, which dates back to 2000. Still, the value of jewellery demand rose 2% to $43 billion, reflecting the higher value of purchases despite lower volumes. The council said elevated prices led consumers in most regions to choose lower caratage or lighter and smaller pieces. Quarter on quarter, jewellery demand recovered 12%, supported by seasonal improvements in China and India and periods of lower prices during the quarter. The annual comparison remained negative in both markets, however, with consumption falling 20% to 100 tonnes in India and 22% to 66 tonnes in China.
On the supply side, mine production rose 3% year on year to 1,071 tonnes, a third-quarter record. That growth did not prevent total supply from falling 1% to 1,369 tonnes, as recycled gold declined 8% to 314 tonnes. Technology-sector demand also rose 3% to 85 tonnes, its highest quarterly level since the fourth quarter of 2021. Electronics demand increased 5% to 72 tonnes, supported by manufacturing related to artificial intelligence. The figures highlight diverging trends across the market during the quarter, with strength in official purchases and fund flows contrasting with weaker jewellery consumption.
Looking ahead to the fourth quarter, the World Gold Council expects central-bank demand to remain resilient and jewellery demand to decline year on year. The council raised its forecast for official demand in 2026, expecting it to match at least the 2025 level, following stronger-than-expected third-quarter purchases and a modest upward revision for the second quarter. By contrast, it said higher interest rates and bond yields, along with a stronger U.S. dollar, could weigh on investment demand. These factors leave the year-end demand outlook dependent on a balance between continued official buying and the risk of tighter financial conditions. The council did not provide additional quantitative figures for investment demand in the fourth quarter.