The global demand for Gold reached a record high in the third quarter of 2025 as prices soared to historic levels. According to the World Gold Council (WGC), total demand rose by three percent year-on-year to 1,313 tonnes during July–September. This marks the highest level of quarterly demand since the WGC began keeping records 25 years ago.
Experts say the surge in demand was driven by growing geopolitical tensions, including the ongoing Russia-Ukraine war and the Israel-Gaza conflict. These crises have strengthened Gold’s reputation as a safe-haven asset during times of uncertainty.
WGC analyst Louise Street explained that regional conflicts and fears of trade disputes have created an atmosphere of instability, pushing investors toward Gold. Central banks played a major role in this rise, increasing their reserves as the precious metal’s price hit new records this year.
In October, Gold prices reached an all-time peak of $4,381.52 per ounce before dropping slightly due to profit-taking. Despite this correction, demand by value surged 44 percent year-on-year to a record $146 billion in the third quarter.
Analysts believe additional factors such as a weaker US dollar, expectations of Federal Reserve rate cuts, and the threat of a US government shutdown also boosted the precious metal’s appeal.
Exchange-Traded Funds (ETFs), which allow investors to gain exposure to Gold without trading in the futures market, saw strong inflows during the quarter. However, the high-price environment had a negative impact on jewellery demand. It fell 23 percent to 419.2 tonnes, marking the lowest third-quarter level since the Covid-19 pandemic in 2020.
Street described the recent decline in prices to around $4,000 per ounce as a “healthy correction,” helping to ease short-term speculative activity.
Overall, Gold continues to demonstrate its status as a preferred investment in times of global uncertainty and market volatility.
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