Gold Shines as Demand Climbs, but is Silver Poised to Follow?

Global gold demand rose 3% year-on-year to 1,313 metric tons in the third quarter, marking a record high, according to the World Gold Council (WGC). The surge came as investors poured money into gold amid geopolitical tensions, U.S. tariff uncertainty, and “FOMO” buying, driving spot prices up 50% this year to a record $4,381 per ounce. Investment demand led the charge, with gold bar and coin purchases up 17% and ETF inflows soaring 134%. These gains offset a 23% drop in jewellery demand, which was hit by high prices. Central banks added 219.9 tons in the quarter, up 10%, keeping total purchases for the year well above pre-2022 levels. Following these record gains, gold and silver have entered a healthy consolidation phase, easing about 10–12% from late-October highs. Analysts attribute the pullback to temporary U.S. dollar strength, though underlying fundamentals – loose Fed policy, central bank buying, and geopolitical risks – remain supportive. Gold is stabilising near $4,000/oz., while silver mirrors its trend. Both metals are expected to resume their upward trajectory as inflation concerns and currency risks persist. Despite the brief pause, the long-term outlook for precious metals remains firmly bullish. Further reading: Investing.com | Gold and Silver Prices Position for the Next Leg Higher Reuters | Global gold demand climbs 3% to quarterly record as investment soars, WGC says Disclaimer: This blog is for informational purposes only and does not constitute financial advice. Buying physical gold as an investment involves risk, as the value of precious metal prices can be volatile. Historical financial performance does not necessarily give a guide of future financial performance. We recommend that you conduct your own independent research and seek professional tax, legal and financial advice before making any investment decisions.