Investors Increase Gold ETF Holdings Despite Market Pressure

Global investors increased holdings in physically backed gold ETFs in the third quarter as funds attracted record inflows despite falling gold prices in September. The World Gold Council reported the buying came across regions as investors sought exposure to gold amid market uncertainty.

According to the World Gold Council, global gold ETFs received $31 billion in the third quarter, while holdings reached a record 4,256 metric tons. September alone saw $10 billion of inflows as gold ended the month at $4,176 per ounce, down 8.5%.

The World Gold Council said higher US Treasury yields and a stronger dollar contributed to gold’s September decline. The 10-year Treasury yield rose 53 basis points to 5.3%, while the DXY dollar index gained 2%.

Futures markets moved differently from ETF investors. According to the World Gold Council, managed money net positions in COMEX gold futures declined by 84 metric tons during September, showing reduced exposure among short-term traders.

The World Gold Council said European demand also strengthened, with UK-listed gold ETFs attracting 54 tonnes in the third quarter. The organization noted the inflows appeared stronger than historical models would have predicted.

Retail gold buyers in India also responded to the recent price correction, with consumers seeking more affordable jewellery options before the festive and wedding season. Aspect Bullion & Refinery CEO Darshan Desai said buyers remained selective despite renewed interest.

"The recent correction has encouraged some buying interest in India, although consumers remain price conscious," said Darshan Desai, CEO of Aspect Bullion & Refinery.

Industry executives said customers were increasingly choosing lightweight designs, lower-carat options and old-gold exchanges to manage costs. Sky Gold & Diamonds managing director Mangesh Chauhan said stable prices helped consumers plan purchases.

"While prices are elevated, their relative stability in recent months has given consumers greater confidence to plan their purchases," said Mangesh Chauhan, managing director of Sky Gold & Diamonds.

Central bank demand also supported the gold market. The World Gold Council reported net central bank purchases of 39 tonnes in August, bringing reported year-to-date buying to 170 tonnes.

Market attention remains focused on US economic data and Federal Reserve policy signals. The Federal Open Market Committee meeting is scheduled for October 27–28, 2026, after September consumer price data is released on October 14, 2026.