The World Gold Council (WGC) has stated that central banks purchased the yellow metal at the fastest pace since 2014, according to a report by the Epoch Times cited by ZeroHedge [1][2].
Total central bank demand rose 42% year over year to 321 tons in the third quarter of 2026 – during the three months through September, the industry body stated in its quarterly Gold Demand Trends report published Tuesday, Nov. 3. The organization lifted its forecast for 2026 central bank demand and now projects that official institutions will at least match the 848 tons purchased last year.
Overall Gold Demand Slips as Retail Buying Weakens
Bar-and-coin demand dropped 19% year over year to 268 tons, while jewelry demand declined 17%. The report stated that retail investors were waiting for a clearer price trend, with gold prices averaging $4,262 per ounce during the quarter.
Electronics and technology demand rose 5% and 3% year over year, respectively, the council said. The divergence between institutional and retail activity underscored how professional buyers responded to macroeconomic signals even as households paused on purchases, according to the report.
Supply Side: Mine Production Hits Quarterly Record
On the supply side, total gold supply slipped 1% to 1,369 tons in the third quarter, according to the report. Mine production climbed 3% to a third-quarter record of 1,071 tons, while recycling fell 8% to 314 tons, the council reported. The supply figures cover the same three-month period as the demand tally.
Industry data shows how the supply mix has shifted over time. In the WGC's historical figures cited by gold author Michael Kosares, global gold supply of 3,994 metric tons (MT) included 2,809 MT from mines and 1,612 MT from recycled scrap [3].
Kosares noted that recycled scrap has increased as producer hedging and official sector sales have moved over to the demand side of the fundamentals equation [3]. The supply-side numbers arrived alongside the council's finding that central bank purchases remained a key pillar of demand even as overall demand declined.
Outlook Faces Balancing Act From Rates and Geopolitics
The report stated that gold markets face a balancing act in the rest of the year. According to the council, increasing interest rates and a mixed inflation outlook could dampen the metal, while geopolitical strife in the Middle East and Eastern Europe and stress in global financial markets could weigh on precious metals.
Gold is sensitive to rising rates because they raise the opportunity cost of holding non-yielding bullion, the report noted. The demand data showed central bank purchases running well ahead of the five-year average even as retail segments weakened.
Gold Prices Retreat From Early 2026 Peak
After a strong start to 2026, gold has surrendered much of its earlier gains, according to the report. As of Tuesday, gold traded below $4,000 on the COMEX division of the New York Mercantile Exchange, down sharply from a record intraday high of more than $5,600 in January. The third-quarter average price of $4,262 per ounce reflected a market that had already pulled back from its winter peak.
The price retreat coincided with a quarter in which central banks were net buyers of 321 tons. The WGC's data showed central bank purchases remained an important pillar of demand even as overall demand declined. Weighing the crosscurrents, the council framed the market as caught between rate-driven headwinds and haven-driven support.
References
- Central Banks Just Bought Gold At Fastest Pace Since 2024, World Gold Council Says. https://www.zerohedge.com/precious-metals/central-banks-just-bought-gold-fastest-pace-2024-world-gold-council-says
- Central Banks Bought Gold at Fastest Pace Since 2024, World Gold Council Says. https://www.theepochtimes.com/business/central-banks-bought-gold-at-fastest-pace-since-2024-world-gold-council-says-6115261
- The ABCs of gold investing how to protect and build your wealth with gold. Kosares Michael J 1948
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