According to the World Gold Council’s latest “Gold Demand Trends Report,” global gold demand in the third quarter was 1,369 tons, a 1% year-on-year decrease, primarily supported by official purchases. During the period, global central banks and other official institutions net increased their gold reserves by 321 tons, a 42% year-on-year increase, marking a new quarterly high since the fourth quarter of 2024. Year-to-date, global central banks have made net purchases of 675 tons of gold, a 6% year-on-year increase. Regarding gold ETFs, physical gold ETFs saw net inflows of 211 tons in the third quarter, bringing total holdings to a record high of 4,256 tons. Meanwhile, gold investment demand was mixed, with demand for gold bars and coins at 268 tons, a 19% year-on-year decrease. The Council noted that gold prices lacked direction, leading to increased caution among individual investors. The Chinese market performed relatively well, with demand for gold bars and coins increasing by 7% year-on-year during the same period. Based on the slowdown in demand for gold bars and coins, the Council lowered its full-year forecast for gold investment demand growth from 400 tons to 200 tons.
This report failed to spur investors to resume their aggressive gold buying spree in the short term. Gold prices may still need to repeatedly test lower support levels before a more robust rebound can occur.
Gold prices are likely to fluctuate between $3,877 and $3,968 in the short term. Pay close attention to potential buying opportunities at the lower end of this range, as there is room for further upward movement in the short term. $3,857 can serve as an important price support level; be sure to manage your risk accordingly.
*Risk Warning: This article is for market analysis purposes only. Price ranges and levels mentioned are for market observation and reference only and do not constitute any investment advice. Precious metal prices are highly volatile; please make independent and prudent decisions and manage your own risk.
Gold Price 1-Hour Chart:
Ferris Kwok
Chief Analyst
Success Financial Group
Email: ferris.kwok@successfn.com