Central banks across the world bought a net 337 tons of gold in the third quarter of 2023, the third strongest quarter on record, according to data released by the World Gold Council on Tuesday.

In the third quarter, the global demand for gold was 1,147 tons, 8 percent higher than the five-year average, according to the data.

In the first three quarters of this year, global central banks' demand for gold increased by 14 percent year on year to reach a record high of 800 tons.

"As for the growing gold buying demand of central banks, I think the primary reason is their strategies of diversifying reserve assets. With rising economic uncertainty, escalating geopolitical risks, and uncertainty in international monetary policies, the central banks are increasingly inclined to bolster their gold reserves," said Wang Lixin, CEO of the World Gold Council (China).

According to the data, global gold investment demand in the third quarter of 2023 witnessed a notable year-on-year increase of 56 percent to 157 tons, primarily driven by the growth in the Chinese and Indian markets.

"We think the gold demand in the fourth quarter will show a steady upward trend. In terms of gold investment, we still believe that the overall demand for retail gold investment will be highly stable," said Wang.