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The World Gold Council said in an update on Thursday some 1,313 tons of gold were bought during the period. “Gold has set record after record this year, and the current environment suggests there could be more upside gains for gold,” said Louise Street, senior markets analyst at the council.

Investment demand worth 537 tons accounted for 55% of overall net gold purchases during the quarter, the council said. Of this, 222 tons was in exchange traded funds worth $26 billion. This takes total ETF purchases this year to 619 tons in the metal.

The council acknowledged there was an element of FOMO (fear of missing out) in terms of renewed investor demand. Street added the market for gold in general was “not yet saturated” despite the metal’s recent burst through $4,000 per ounce. “The outlook for gold remains optimistic,” she said, adding that geopolitical tensions, “stubborn inflationary pressure” and uncertain trading conditions continued to dominate headlines.

Crucially, central banks returned with greater force in the third quarter. The council said third quarter official sector purchases totalled 220 tons, 10% higher than at the same time last year when the gold price was trading around $2,500 to $2,600/oz.

While central bank purchases year-to-date were lower than for the last three years they were “comfortably above” pre-2022 levels, the council said.

Third quarter gold jewellery demand fell 19% year-on-year as buyers shied away from record pricing. The two largest consumer markets – India and China – recorded a quarter-on-quarter uplift which the council put down to “largely seasonal factors”, but added that the year-on-year “picture across both markets remained weak”.

Total gold supply reached a quarterly record of 1,313 tons, a 3% year-on-year increase. Mine production increased two percent to 977 tons while recycling was up six percent year-on-year at some 344 tons.

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