JPMorgan Reports Slowdown in Retail Gold Demand as Prices Ease
Retail investors’ demand for gold has weakened this quarter as prices retreat, according to JPMorgan analysts. The bank highlighted a slowdown in gold exchange-traded fund (ETF) and bar demand following a strong rally earlier in the year.
Strategists led by Nikolaos Panigirtzoglou noted that since October 20, retail buying momentum has cooled amid a broader price correction. Gold ETF holdings have contracted by just under 2% from their October 21 peak, though they remain above end-September levels.
Gold ETF Flows Show Modest Gains
JPMorgan said that quarter-to-date inflows into gold ETFs remain slightly positive, yet they signal a notably weaker demand environment in the fourth quarter of 2025. This slowdown contrasts sharply with the third quarter, when global investment demand across bars, coins, and ETFs surged to nearly 540 tonnes — valued around $60 billion, compared with roughly $50 billion in each of the first two quarters.
During that earlier period, investors increasingly used gold as a hedge against equity risk, purchasing both equity funds and gold to balance portfolios, the report noted.
Central Banks Continue Gold Buying Spree
Central banks also remained active buyers, increasing their gold reserves to about 220 tonnes in the third quarter, up from 170 tonnes in the previous quarter. The total value of these purchases rose to approximately $25 billion, pushing gold’s share in total central bank reserves to nearly 27%, up from 24% in Q2.
Gold Rally and Market Outlook
Historically, gold prices have tended to weaken after major rallies. While the current upswing is significant, JPMorgan notes that it ranks as only the third-largest rally in percentage terms over the past 50 years — behind the late 1970s and 2000–2011 bull runs.
The ongoing rally began in October 2022, when spot gold traded near $1,617 an ounce, before accelerating in November 2024 following Donald Trump’s re-election as U.S. President.
Gold reached an all-time high of $4,381.21 an ounce on October 20, representing a 170% increase from its 2022 low, before easing back to $3,978.63 at the close on Wednesday.
