Global gold demand reaches record high as investors flock to safe-haven asset

Year-to-date, gold demand rose to 3 717 tons, up 1% from 2024, with the value soaring 41% to $384bn

- SIPHELELE DLUDLA

GLOBAL gold demand surged to its highest level on record in the third quarter of 2025, fuelled by a powerful mix of investor fear, geopolitical tensions, and a weakening US dollar, according to the World Gold Council's (WGC) Q3 2025 Gold Demand Trends report.

According to the WGC on Thursday, total demand, including over-the-counter (OTC) trading, climbed 3% year-on-year to 1 313 tons, worth an unprecedented $146 billion, marking the strongest quarter ever recorded.

Year-to-date, gold demand rose to 3 717 tons, up 1% from 2024, with the value soaring 41% to $384bn.

Investment was the key driver, accounting for 55% of total demand. Investors added 537 tons in the third quarter a 47% increase year-on-year - with both gold-backed exchange-traded funds (ETFs) and physical investment surging amid growing "FOMO" (fear of missing out) as prices approached $4 000 per ounce.

Gold ETFs recorded 222 tons of inflows in the third quarter, the strongest since 2020, worth around $26bn. That brought total ETF holdings to 3 838 tons, just shy of the all-time high seen five years ago. Year-to-date inflows reached 619 tons ($64bn), led by North American funds with 346 tons, followed by Europe (148 tons) and Asia (118 tons).