According to a report released Tuesday by the World Gold Council (WGC), central banks continued to buy gold in the third quarter at the fastest pace since the end of 2024, even as gold faces pressure from rising oil prices and higher interest rates.
In the three months through the end of September, central banks net purchased 321 tonnes of gold. After a slow start to 2026, this figure brings the year-to-date purchase estimate to 675 tonnes, slightly above the level of the same period last year.
These figures highlight that central banks, a key force driving gold's multi-year bull market and its record high in January this year, remain a critical support for gold prices in an otherwise lackluster market. Since the outbreak of the Iran war at the end of February, gold prices have shrunk by about a quarter, as rising energy costs intensified expectations of tighter monetary policy, which poses a headwind for non-interest-bearing gold.
John Reade, senior market strategist at the World Gold Council, said that the weaker gold price during the quarter likely prompted some central banks to increase their purchases. He noted that for central banks pessimistic about the dollar's outlook, the stronger dollar may also have made it more attractive to shift some reserves into gold. "If you believe the dollar will weaken over the long term and you hold short-term US Treasuries that are about to mature, then you might take some of those 'expensive dollars' and buy gold," Reade said.
Gold prices have returned to around $4,000. Nearly two-thirds of the estimated central bank purchases were not self-disclosed by monetary authorities. Consulting firm Metals Focus Ltd., on behalf of the World Gold Council, calculated purchases by combining public data, trade statistics, and field research.
In the most recent quarter, the largest buyers on a disclosed basis were China and Poland, which added 63 tonnes and 41 tonnes respectively. Russia was the only major seller, reducing its holdings by 19 tonnes during the quarter.
Gold prices have trended weaker in recent months, with the ongoing Middle East conflict continuing to push up oil prices and interest rate expectations. However, the World Gold Council said that inflows into gold ETFs were notably strong, with holdings increasing by 211 tonnes in the third quarter, a record high.
Affected by tax policy adjustments in India and China as well as high gold prices, consumers shifted toward lighter, lower-carat products, and gold jewelry demand fell 17% to 313 tonnes, the weakest third quarter since the association began keeping data in 2000.
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