Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
Gold demand in the UAE — both for jewellery and as investment in the form of coins and bars — softened in the third quarter compared to the previous quarter and the same period last year, even as global gold demand rose 3% year-on-year to 1,313 tonnes, according to the World Gold Council’s quarterly report on gold demand trends.
Jewellery fabrication in the UAE totalled 6.3 tonnes, marking an 18% decline from the previous quarter and 10% drop from a year earlier, while demand for coins and bars fell to 3.4 tonnes, down 18% quarter-on-quarter and 6% year-on-year.
Analysts attribute the decline in demand to consumers taking a cautious stance after gold prices surged to unsustainable highs, dampening discretionary purchases.
Worldwide, total gold demand including over-the-counter (OTC) transactions rose 3% year-on-year to 1,313 tonnes, the highest quarterly total ever recorded, according to the report. In value terms, global demand jumped 44% year-on-year to $146 billion, also a record.
Year-to-date gold demand reached 3,717 tonnes, up 1% from the same period last year, equivalent to $384 billion in value, reflecting a 41% increase. The report said investors remained firmly in the driving seat, with “huge ETF buying” of 222 tonnes and a fourth consecutive quarter of bar and coin demand above 300 tonnes (316 tonnes), together fuelling the rise in overall demand.
Global jewellery consumption fell 19% year-on-year to 371 tonnes, the sixth successive quarterly decline, as high prices eroded affordability. Yet, in value terms, jewellery spending rose 13% to $41 billion, as consumers spent more per gram even while buying less.
Meanwhile, investment demand accelerated sharply, with total investment in gold (bars, coins, and ETFs) reaching 537 tonnes, a 47% year-on-year increase. Within this, bar and coin demand rose 17% year-on-year, while ETF inflows surged 134%, pushing total holdings to 3,838 tonnes, just 2% below their November 2020 record of 3,929 tonnes.
Central banks bought a net 220 tonnes of gold in Q3, 28% more than the previous quarter, led by the National Bank of Kazakhstan (18 tonnes) and the Central Bank of Brazil (15 tonnes). Total official sector buying in the first nine months of 2025 stood at 634 tonnes, slightly below last year’s pace but still well above the pre-2022 average.
The National Bank of Poland remains the largest buyer year-to-date, having raised its target gold share in reserves from 20% to 30%, while several smaller emerging-market banks also increased holdings during the quarter.
Gold demand for technology applications fell slightly, down 2% year-on-year to 82 tonnes, as growth from AI-related demand was offset by US tariff headwinds and the high price environment. Electronics demand was flat at 69 tonnes, while other industrial uses declined 5% and dental demand 7%.
On the supply side, global gold supply rose 3% year-on-year to 1,313 tonnes, also a quarterly record, driven by record mine production of 977 tonnes and increased recycling activity (344 tonnes, up 6%), despite strong gold prices.
"The outlook for gold remains optimistic, as continued US dollar weakness, lower interest rate expectations, and the threat of stagflation could further propel investment demand. Our research indicates the market is not yet saturated,” said Louise Street, senior markets analyst at the World Gold Council.
The report said high prices remain the biggest obstacle to jewellery demand, but central bank purchases are likely to stay resilient, with full year buying estimated between 750 and 900 tonnes.
