Central Banks Bought 321 Tonnes of Gold in Third Quarter as AI Lifts Technology Demand

World Gold Council data cited by Al Bayan show total demand slipped 1% to 1,369 tonnes but its value rose 22% to $188 billion, while gold used in electronics rose on AI-related manufacturing.

By Nakoda News Desk

2 days ago·2 min read

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Central banks and other official institutions added a net 321 tonnes of gold to their reserves in the third quarter of 2026, according to the World Gold Council's latest Gold Demand Trends report, as reported by Dubai daily Al Bayan. That is 45% more than a year earlier and the largest quarterly total since the fourth quarter of 2024.

Official-sector buying for the year to date reached 675 tonnes, up 5% on the same period of 2025. The report attributes the demand mainly to reserve diversification and risk management.

Total global demand was 1,369 tonnes in the quarter, down 1% year on year. With the average price at $4,262 an ounce, however, the value of that demand rose 22% to $188 billion.

Investors Return to ETFs

Gold-backed exchange-traded funds took in 211 tonnes in the quarter after outflows in the second quarter, according to the report. That was only 5% below the strong level of the same period in 2025, and it lifted total ETF holdings to a record 4,256 tonnes. Over-the-counter and other demand came to 143 tonnes, up from 101 tonnes a year earlier.

Retail investors bought less. Demand for bars and coins fell 20% to 268 tonnes because some buyers held back while prices lacked a clear direction. China was the exception, with demand there up 7%. High prices also weighed on jewellery, where demand fell 17% to 313 tonnes even as its value rose to $43 billion, and consumers continued to switch to lighter, lower-carat pieces.

AI Manufacturing Supports Technology Demand

Gold used in technology rose 5% to 85 tonnes, the highest quarterly total since the fourth quarter of 2021. Within that, electronics demand also grew 5% to 72 tonnes, which the report linked to manufacturing related to artificial intelligence. Gold is used in connectors, bonding wire and other components in chips and servers.

On the supply side, total supply was 1,369 tonnes, down 1%. Mine production rose 3% to a third-quarter record of 1,071 tonnes, but recycling fell 8% to 314 tonnes despite high prices, its lowest level since the fourth quarter of 2023.

The figures add to evidence that the AI hardware build-out is pulling on raw materials well beyond chips and power. The amounts involved are still small next to central bank and investment flows, which continue to set the direction of the gold market.