Overall demand for gold slowed in the third quarter although the largest ETF tracking the precious metal continues to see cash move in the door.

The World Gold Council said that about 1,085 metric tons of gold was sold globally in the three months through September, down 139 metric tons, or 11%, from the record 1,223.5 tons in the same quarter year-over-year, reports Kelvin Chan for the Associated Press.

Notably, European investors were “less aggressive” in their purchases, accounting for over half of the drop in gold bullion demand. Additionally, gold demand in China, the world’s second largest consumer of gold, “lost further momentum” as demand declined 8%.

“This was particularly noticeable among the middle classes whose purchases of 18-carat gold jewelry were among the worst casualties,” the report said.

Still, SPDR Gold Shares ETF (NYSEArca: GLD) remains popular and has posted inflows of more than $1 billion since the end of September.

The World Gold Council projects that Chinese demand will recover once the holiday gift giving season approaches and potential stimulus measures are added as the new leaders take office.

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