Who is buying gold? Four kinds of demand behind the swings

Where things stand on inflation day

Gold rose about 1.5% to 2% on Monday and silver close to 3%, adding to last week's gains. A softer dollar, lower oil prices and hopes for progress in US–Iran talks all helped.

Today brings the US consumer price figures for October, out at 8:30 am in New York, which is 7 pm in India. Economists expect prices to have risen about 0.3% in the month. A hotter number would add to the chance of a Federal Reserve rate hike in December, which markets already put at close to 80%. A cooler one would ease it. Either way, gold could move sharply tonight.

We wrote about this week's data in detail on Sunday. Today we want to step back and look at something that moves far more slowly: who is actually buying gold.

1. Central banks: the patient giants

Central banks bought 321 tonnes of gold in the third quarter of 2026, according to World Gold Council figures, up 42% on a year earlier. China and Poland led the way.

Central banks buy gold to hold in their reserves for decades. They are not trying to catch next week's move, and they do not usually sell into a dip. Their buying has been one of the strongest supports for gold over the last few years, and we see no sign of it fading.

2. Investors and funds: fast in, fast out

Gold-backed exchange-traded funds took in 211 tonnes in the third quarter. This is the demand that reacts to interest rates, the dollar and headlines. It can turn quickly: when rate hike odds rise, some of this money steps back, and when they fall it returns.

That is why gold has felt so restless this autumn. A large share of the day-to-day selling and buying comes from investors who watch every data release, today's included.

3. Jewellery and households: tradition and value

In India and China, gold is bought for weddings, festivals and family savings as much as for investment. Indian buyers have just come through Dhanteras and Diwali, and the wedding season runs on into the coming months.

Household buyers tend to be price-sensitive. When gold rises quickly they buy less, and when prices dip they often step in. That habit helps to soften the falls, and it is one reason long sell-offs in gold tend to find a floor.

4. Technology: the quiet one

Gold used in electronics and technology reached 85 tonnes in the third quarter, its highest level since late 2021. It is a smaller slice of demand, and it plays a much bigger role in silver than in gold, as we wrote yesterday. But it is steady and it is growing.

Why this matters for long-term holders

When you add these four together, a pattern appears. The fastest money, from funds and traders, drives most of the daily swings. The slowest money, from central banks and households, sets the long-term direction. Right now, the slow money is still buying.

That is part of why we can say two things at once: that the coming weeks are likely to stay choppy, and that the long-term picture for gold remains positive.

What our AstroPlanetary view says

Our short-term reading is event-based and updates every hour, and tonight's inflation report is exactly the kind of event it is built for. On the planetary side, November remains the unsettled stretch we described at the start of the month. Jupiter has just changed sign and turns retrograde in December, and the Rahu–Ketu axis shifts in late November. In our framework that goes with sharp, two-way markets rather than a steady trend.

Our long-term view is unchanged. We see gold's next big high in November 2027, with ups and downs along the way.

What we would do this month

We would stay away from short-term investing in gold and silver in November. On a night when one data release can move gold by 1% to 2% within minutes, short-term positions are a coin toss. Long-term holders can let the fast money do its work and keep their eyes on the bigger trend.

Everyone's situation is different. If you are making a decision about your own money, speak to a qualified financial adviser.

Get the day-by-day and longer-term view

The Bullion Signals app gives the short-term forecast updated every hour, the day-by-day view, and the medium and long-term outlook for gold and silver. See the passes, or read our long-term view: the next big high in November 2027.

Sources: World Gold Council Q3 2026 Gold Demand Trends; CME FedWatch; US Bureau of Labor Statistics release calendar; market prices as reported on 9 and 10 November 2026.

Educational research, not financial advice. Forecasts and readings are hypothetical model outputs, not guarantees or recommendations, and past results do not indicate future performance.