Retail investors have scaled back gold purchases this quarter amid a decline in prices, according to JPMorgan, which pointed to easing demand for both exchange-traded funds (ETFs) and physical gold after strong inflows earlier in the year.
“Since the start of 4Q, there has been a slowing in the retail impulse into gold amid the correction since Oct 20th,” strategists led by Nikolaos Panigirtzoglou wrote, highlighting that gold ETF holdings have contracted by just under 2% since peaking on October 21. Still, total holdings remain slightly above levels seen at the end of September.
The bank said quarter-to-date flows into gold ETFs remain modestly positive but reflect “a notably weaker demand backdrop in 4Q25.”
That marks a sharp contrast to the third quarter, when combined investment in bars, coins, and ETFs reached nearly 540 tonnes, worth around $60 billion — up from roughly $50 billion in each of the first two quarters of the year.
JPMorgan noted that during Q3, investors increasingly used gold as a hedge against equity exposure, adding both equity and gold positions simultaneously.
Meanwhile, central banks continued expanding their gold reserves, raising holdings to around 220 tonnes in the third quarter from 170 tonnes in the previous one. The value of those additions rose to approximately $25 billion, lifting the share of gold in total reserves to just under 27%, compared with about 24% in Q2.
Historically, gold prices tend to soften for extended periods following major rallies. The current upswing—though substantial—still ranks as the third-largest gain in percentage terms over the past 50 years, behind the surges seen in the late 1970s and the 2000–2011 bull run.
This rally began in October 2022, when spot prices were near $1,617 per ounce, before gathering pace after Donald Trump’s re-election in November 2024.
Gold reached an all-time high of $4,381.21 an ounce on October 20, marking a 170% increase from its 2022 low, before easing back to close Wednesday’s session at $3,978.63.