Gold broke a series of records in the September quarter as investors sought shelter from global political and market turbulence, with the World Gold Council reporting the highest quarterly demand on record.
The LBMA gold price hit 13 new all-time highs during the quarter, rising 16 per cent at an average US$3,456.54 per ounce. Prices lifted 40 per cent year on year and 5 per cent quarter on quarter, fuelled by safe-haven flows and US dollar weakness.
The World Gold Council’s Q3 2025 Gold Demand Trends report revealed global demand reached 1,313 tonnes, equivalent to US$146 billion, marking the strongest quarter ever recorded.
Investment demand drove this momentum, accounting for 55 per cent of net consumption after rising 47 per cent year on year to 537 tonnes, driven by uncertainty, geopolitics and what the council described as investor “FOMO”.
Physically-backed gold exchange-traded funds (ETF) continued to see strong inflows for a third consecutive quarter. Investors added 222 tonnes in the September quarter, taking year-to-date inflows to 619 tonnes worth US$64 billion.
North America led this ETF buying with 346 tonnes, followed by Europe at 148 tonnes and Asia at 118 tonnes.
In Australia, physical bar and coin investment rose 30 per cent year on year, while jewellery demand has fallen 10 per cent. The combined effect has pushed domestic consumption 12 per cent higher to 5 tonnes.
World Gold Council head of Asia (ex-China) and global head of central banks Shaokai Fan said Australian ETF allocations have been a standout, with local physically backed funds adding more than 7.2 tonnes so far this year. Assets under management have reached over AU$9 billion, representing 49.6 tonnes in total gold holdings.
Fan said renewed central bank buying and emerging market demand continue to support gold’s role in diversified portfolios, noting global ETF flows represent “a major structural demand wave for gold”.
Central bank buying also accelerated, with 220 tonnes of net purchases in the third quarter, up 28 per cent on the previous quarter and 10 per cent year-on-year.
Total gold supply reached a record 1,313 tonnes, up 3 per cent year-on-year, as mine production increased 2 per cent to 977 tonnes and recycling supply rose 6 per cent to 344 tonnes.
World Gold Council senior markets analyst Louise Street said: “Gold’s climb towards US$4,000/oz in the third quarter underscores the strength and persistence of the factors that have been driving demand throughout the year.”
“Heightened geopolitical tensions, stubborn inflationary pressures and uncertainty around global trade policy have all fuelled appetite for safe-haven assets as investors look to build resilience in their portfolios.”
She added that US dollar weakness, lower interest-rate expectations and stagflation risks have kept sentiment positive, noting “the strategic case to hold gold remains firmly in place”.
