Central banks worldwide accumulated 321 tons of gold in the third quarter of 2026, marking the fastest pace of buying since the end of 2024, according to the World Gold Council report released Tuesday. This brings the year-to-date total to 675 tons, slightly ahead of the same period in the previous year. The purchases occurred despite gold facing pressure from higher oil prices and interest rates during the quarter.
The metal has lost approximately 25% of its value since the Iran war began in late February, as higher energy costs fueled expectations of tighter monetary policy. As reported by the World Gold Council, weaker gold prices during the quarter likely encouraged some central banks to step up purchases. For central banks with a bearish outlook on the US dollar, the greenback's rally made shifting some reserves into gold more appealing.
Despite gold's recent decline, inflows into gold-backed exchange-traded funds remained strong, with holdings rising by 211 tons to a record 4,256 tons in the third quarter, as reported by the World Gold Council. However, jewelry demand fell 17% to 313 tons, marking the weakest third quarter in the council's data going back to 2000, due to tax changes in India and China, along with higher prices pushing consumers toward lighter and lower-carat pieces. Off-exchange demand also increased significantly to 143 tons, up from 101 tons in the same period last year.
China and Poland emerged as the biggest disclosed buyers in the latest quarter, adding 63 tons and 41 tons respectively, according to the World Gold Council. Russia was the only major seller, offloading 19 tons during the period. Almost two-thirds of the estimated central-bank buying wasn't disclosed by monetary authorities themselves, with consultancy Metals Focus Ltd. calculating purchases using public data, trade statistics and field research.
