Central banks bought 321 tonnes of gold in the September quarter, up 42% on a year earlier, according to the World Gold Council. Total demand was steady at 1,369 tonnes, and mine output hit a third-quarter record of 1,071 tonnes. For ASX-listed producers, the mix of strong official buying and rising supply is worth watching.
Official buyers carry the load
The council said year-to-date central bank purchases reached 675 tonnes, 6% higher than the same period of 2025, and it now expects full-year buying to at least match last year. Only about 120 tonnes were formally reported, so most of the buying happened quietly. China and Poland led the disclosed purchases. Gold-backed ETFs also returned to inflows, adding 211 tonnes and lifting holdings to a record 4,256 tonnes.
Retail demand cools
The softer side of the report was jewellery, down 17% to 313 tonnes, and bar and coin demand, down 19% to its lowest quarterly level in four years. At an average price near US$4,262 an ounce, the value of total demand still rose 22%, but higher prices are clearly testing physical buyers. The council also trimmed its 2026 investment demand growth forecast to about 200 tonnes from 400 tonnes.
What it means for ASX gold producers
Record mine supply tells us producers are responding to the price, but margins are the real story. Northern Star reported all-in sustaining costs of $3,217 an ounce for the September quarter, and Evolution Mining held its FY27 guidance despite lower output. Sustained central bank demand supports the price floor, yet cost inflation can still squeeze earnings. Investors tracking the sector can follow more coverage in our gold section.
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