Q3 Gold Demand Hits Record as Inflation Persists, SNAP Lapses

Daily News Nuggets | Today’s top stories for gold and silver investors
October 31st, 2025

Gold & Silver Cap Record October Despite Choppy Week

October produced historic gains for the precious metals complex. Gold pierced the $4,000 level and recorded an intramonth high, while silver reached fresh highs not seen in decades. Both metals have given back some of those extreme moves since mid-month, but remain substantially higher on the month overall. The price action this week looks like consolidation after a steep advance: healthy pullbacks and chop as traders reassess positions around key technical and psychological levels.

The underlying drivers supporting the rally remain intact. Expectations for future rate cuts, continued geopolitical hedging, and robust investor interest in physical metal and ETFs continue to underpin demand. Added to that, sentiment surveys of market participants — including views circulating at LBMA meetings — point to bullish medium-term expectations, with some delegates envisioning higher gold prices over the next 12 months. At the same time, volatility has risen alongside momentum. Larger intraday swings mean risk management and conservative position sizing are increasingly important for investors participating in these markets.

World Gold Council: Q3 Global Gold Demand Hits New Record

The World Gold Council reported that global gold demand in Q3 rose about 3% year-on-year to a record 1,313 tonnes, driven by strong flows into bars and coins and a resurgence of gold-backed ETF inflows. Investment demand, fueled by uncertainty around trade policy and geopolitics as well as renewed retail interest, was the primary contributor to the increase. Central banks also continued their accumulation, adding roughly 220 tonnes during the quarter, while jewelry consumption softened as elevated prices weighed on retail purchases.

For investors, the picture is notable because demand appears broader and less dependent on interest-rate moves than it was earlier in the cycle. That profile tends to support price stability during pullbacks: buyers often step in when prices retreat, rather than waiting for lower borrowing costs. The durability of this demand will be tested by upcoming macro releases and any shifts in central bank behaviour, but the current breadth of buyers provides a constructive backdrop for precious metals.

PCE Inflation: Closer to Target, But Core Stays Sticky

Fresh personal consumption expenditures (PCE) data showed headline inflation moderating toward the Federal Reserve’s 2% target, with the year-over-year print easing. The monthly increase broadly matched consensus expectations, but the core PCE reading — which strips out food and energy — remained noticeably more persistent. Services inflation was the main contributor to the stickier core reading, while goods prices continued to trend lower.

The mixed nature of the report gives policymakers room to consider gradual rate cuts, but persistent core inflation keeps pressure on the Fed to remain cautious. For the gold market, the nuance is important: lower headline inflation strengthens the narrative for eventual rate cuts, which can be supportive of gold, while a stubborn core reading underlines the hedge appeal of precious metals if inflation re-accelerates. Investors should watch subsequent data releases closely for confirmation of either trend.

Dallas Fed’s Logan Opposed This Week’s Rate Cut

Not all Federal Reserve officials agreed with the most recent quarter-point reduction in the policy rate. Dallas Fed President Lorie Logan publicly stated she voted against the cut and signaled reluctance to support further reductions in the near term. Her concerns focused on inflation remaining elevated and consumer spending running above trend. She and another dissenter highlighted how recent data leave room for caution.

That split within the Fed underscores continuing uncertainty about the path of monetary policy. When policymakers diverge on timing and magnitude of rate moves, markets tend to price in a wider range of outcomes, which can elevate demand for safe-haven assets such as gold and silver. Investors should factor in a potentially bumpy policy path when sizing positions or timing entries.

Government Shutdown Drags On; SNAP Benefits Set To Lapse Tomorrow

The federal government shutdown entered its fourth week with no clear resolution, and immediate social and economic consequences are mounting. Beginning November 1, tens of millions of Americans risk missing monthly food assistance payments as SNAP benefits face suspension in the absence of additional funding. Federal employees missed their first paychecks, and although some states are deploying emergency funds to ease local impacts, those measures are temporary and limited in scope.

An extended shutdown creates several market-relevant risks: delayed economic data releases that complicate central bank decision-making, increased uncertainty about near-term consumer spending, and the potential for localized fiscal stress if state and municipal support proves insufficient. For investors in metals, these factors add to the safe-haven narrative by increasing the probability of demand tied to geopolitical and fiscal instability.