bar demand also fell by 52 percent in the United States to 10.5 tonnes, and by 66 percent in Turkey to 7.9 tonnes. Indonesia, Taiwan and Thailand also saw large declines.
Bullion demand to back gold exchange-traded funds - which issue securities backed by physical metal - jumped to 136 tonnes from 87.4 tonnes, however.
Central banks continued to diversify their reserves into gold in the third quarter, but buying was down by nearly a third year-on-year. Official sector demand reached 97.6 tonnes last quarter, down from 140.8 tonnes a year before.
Grubb said in the full year demand was likely to outstrip 2011's 47-year high.
The quarter was bad, but we're still ahead of where we were last year, which was a record going back to 1964, he said. If we get another 100 tonnes or so in the fourth quarter, you're talking a figure for the full year that's higher than 2011