Gold is still 25% below its peak even as demand reaches $188B in Q3
Central banks bought an estimated 321 metric tons of gold in the third quarter of 2026, exceeding global jewelry demand of 313 tons as high prices weakened consumer buying. Gold-backed ETFs also added 211 tons, while demand for jewelry and bars and coins fell. Much official buying is not identifiable in public country reports, limiting conclusions about which governments bought or why. Survey responses suggest reserve managers expect the dollar’s share to decline, but do not prove gold purchases replaced dollar assets. Bitcoin rose 42.7% in the quarter, outperforming gold, as US spot ETFs accumulated holdings; both assets then fell in October. The comparison shows that sustained institutional demand or scarce supply does not guarantee short-term price protection: investors may sell for liquidity or risk-management reasons, while buyers hold assets for different purposes and time horizons.
