Central banks bought the most gold in Q3 this year since late 2024

[Financial News] Central banks around the world bought gold at the fastest pace since late 2024 in the third quarter of this year. As gold prices fell about 25% after the Iran war broke out, central banks moved to buy the dip, supporting the gold market.
According to the World Gold Council (WGC) and other sources on the 3rd, central banks bought a net 321 tonnes of gold between July and September. That was the largest amount since the fourth quarter of 2024.
Net purchases totaled 675 tonnes through September this year, slightly above the same period last year. Buying had slowed early in the year but picked up again in the third quarter.
Among countries that disclosed their purchase totals, China bought the most, at 63 tonnes, followed by Poland at 41 tonnes. Russia, on the other hand, sold 19 tonnes, making it the only major country to record large-scale net sales.
About two-thirds of estimated central-bank purchases were not directly disclosed by the countries’ monetary authorities. The WGC estimated actual purchase volumes using trade statistics, field surveys and other sources.
John Reade, the WGC’s chief market strategist, said the weakness in gold prices in the third quarter may have prompted central banks to increase their purchases. He explained that central banks expecting the dollar to weaken over the long term may have taken advantage of its recent strength to move funds from maturing U.S. short-term Treasury securities into gold.
Gold prices fell about 25% after the Iran war broke out on February 28. The Middle East war sent oil prices soaring, fueling inflation concerns and expectations of interest rate hikes. Because gold pays no interest, it becomes less attractive to investors as interest rates rise.
However, gold ETF holdings rose by 211 tonnes in the third quarter, reaching a record. By contrast, demand for gold jewelry fell 17% year over year to 313 tonnes, its lowest level for a third quarter since the WGC began compiling the data in 2000.
Demand for gold bars and coins also fell 19% to 268 tonnes. In China, however, demand for gold bars and coins rose 7% to 79 tonnes, while purchases for the year to date reached a record 393 tonnes.
Gold mine production rose 3% to 1,071 tonnes, a record for a third quarter, while recycled gold supply fell 8% to 314 tonnes, its lowest level since 2023.
 


[email protected] Lee Seok-woo, International Affairs Specialist Reporter