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Gold purchases reach 20-year high Amid global conflicts and trade wars
Global gold demand has surged to its highest level in more than two decades, driven by geopolitical tensions, economic uncertainty, and investors seeking safety amid record-high prices for the precious metal.
According to the World Gold Council (WGC), gold demand between July and September reached its strongest quarterly level since at least 2000, when the organization began tracking data. Total demand rose 3% year-on-year to 1,313 tonnes, while the value of purchases jumped 44%, hitting a record $146 billion for the quarter.
Analyst Louise Street from the WGC said investors increasingly view gold as a hedge against volatile markets. “With equity valuations at historic highs, investors are nervous and turning to gold as protection in case of a sudden downturn,” she explained.
The weakening U.S. dollar has also boosted gold’s appeal, as both assets typically compete as safe havens. Recent political pressure on the Federal Reserve from Donald Trump, who has called for lower interest rates, has further fueled market uncertainty.
Gold prices soared to a historic $4,381.52 per ounce in October, averaging $3,456.54 per ounce during the third quarter — up 16% compared to the previous period. The surge has also sparked “FOMO” (fear of missing out) among investors, leading to a 47% increase in purchases of bars, coins, and ETFs linked to gold prices.
However, jewelry demand has weakened, dropping to 419 tonnes, the lowest third-quarter level since 2020. The WGC attributes this decline mainly to lower consumption in India and China, where jewelry purchases fell 31% and 18% respectively.
Despite this, experts expect overall demand to remain strong. The WGC describes the recent price correction as “healthy,” signaling a shift toward long-term strategic investment rather than short-term speculation.