Central Bank Gold Buying Jumps 42% to 321 Tonnes in Third Quarter
Key Facts
Central banks and other official institutions added a net 321 tonnes to their gold reserves in the third quarter of 2026, up 42% year on year, according to the World Gold Council. The council said this was the highest quarterly total since the fourth quarter of 2024. Purchases exceeded the five-year average of 227 tonnes for the quarter and were also higher than the second-quarter total. In the first nine months of the year, purchases reached 675 tonnes, up 6% from the same period in 2025. This reinforces the council’s expectation that central bank demand in 2026 will at least match 2025, after third-quarter buying came in stronger than expected.
Reported figures capture only part of the activity: banks disclosed net purchases of 120 tonnes in the third quarter, compared with an estimated total demand of 321 tonnes. The council estimated that undisclosed activity accounted for about 63% of central bank demand during the quarter. China and Poland were the largest reported buyers, adding a combined 104 tonnes, or about 86% of reported net purchases. The People’s Bank of China added 63 tonnes, while the National Bank of Poland increased its holdings by 40 tonnes. Kazakhstan and Uzbekistan each added 14 tonnes, while Russia’s reduction of 19 tonnes was the largest reported decline in reserves during the quarter.
Buying accelerated in the second and third quarters as the quarterly average price fell from its first-quarter peak and price volatility eased, according to the council. Portfolio diversification and risk management remained the main drivers of central bank demand. The council said this pattern could provide some support and stability for the price, but did not establish a confirmed price floor, because the relationship between purchases and prices is not stable enough to do so. In the broader market, the average evening LBMA gold price was $4,262 an ounce in the third quarter, up 23% year on year and the third-strongest quarterly average on record. The GCUSD gold contract closed at 3946.7 on 3 November 2026, according to EL7 data.
Global gold demand remained close to its level a year earlier, despite diverging trends among its components. Demand, including over-the-counter trading, reached 1,369 tonnes in the third quarter, down 1% year on year, while its value rose 22% to $188 billion. In the first nine months of 2026, demand was 3,881 tonnes, close to the record 3,884 tonnes recorded in the corresponding period of 2025, while its value reached a record $566 billion. Jewellery purchases fell 17% year on year to 313 tonnes in the third quarter, the weakest third quarter in the council’s data series. By contrast, technology demand rose 3% to 85 tonnes, its highest quarterly level since the fourth quarter of 2021.
Physically backed gold exchange-traded funds returned to inflows in the third quarter, adding 211 tonnes and lifting holdings to a record 4,256 tonnes. In the technology sector, demand for gold used in electronics rose 5% to 72 tonnes. The council attributed the growth to manufacturing linked to artificial intelligence. On the supply side, mine production rose 3% year on year to 1,071 tonnes, a record for a third quarter. However, total supply fell 1% to 1,369 tonnes during the quarter.
For the rest of the year, the World Gold Council expects central bank demand to remain strong in the fourth quarter, with annual purchases at least matching the 2025 level. At the same time, the council sees higher interest rates and yields, along with a stronger dollar, as potential pressures on investment demand, while fiscal concerns, inflation risks, geopolitical tensions and market stress could support it. The council cut its estimate for growth in investment demand in 2026 to 200 tonnes compared with 2025, from a previous forecast of 400 tonnes. Louise Street, the council’s senior markets analyst, said, "The outlook for gold looks finely balanced through the end of the year."