JPMorgan flags slowdown in retail gold buying as prices retreat
Retail investors’ appetite for gold has weakened this quarter as prices eased, according to JPMorgan, which pointed to a slowdown in exchange-traded fund (ETF) and bar demand following a strong run 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, noting a contraction of just under 2% in gold ETF holdings since their October 21 peak. Still, overall holdings remain above end-September levels.
The bank said quarter-to-date (QTD) flows into gold ETFs remain modestly positive but reflect “a notably weaker demand backdrop in 4Q25.”
That contrasts with the third quarter, when total investment demand in bars, coins, and ETFs rose to nearly 540 tonnes, valued at about $60 billion — up from roughly $50 billion in each of the first two quarters.
Investors had increasingly used gold as a hedge for equity risk, buying both equity funds and gold simultaneously during the prior quarter, strategists added.
Central banks also continued adding to reserves, increasing their gold holdings to around 220 tonnes in the third quarter, up from 170 tonnes in the prior quarter. The value of these purchases climbed to roughly $25 billion, with the share of gold in total central bank reserves rising to just under 27% from about 24% in the second quarter.
Over the past half-century, gold has tended to weaken for extended periods after major rallies. The current upswing, while impressive, ranks only as the third largest in percentage terms during that span—well behind the surges of the late 1970s and the 2000–2011 bull market.
This latest rally began in October 2022, when spot prices hovered near $1,617 an ounce. The climb was gradual at first, before accelerating sharply from November 2024 following Donald Trump’s re-election as U.S. president.
Gold hit a record $4,381.21 an ounce on October 20, marking a 170% gain from its 2022 low, before easing back to end Wednesday’s session at $3,978.63.
Source : Investing.com
