The WGC said the rise was driven by stronger consumer and central bank buying.
Year-to-date demand was up 18% YoY to pre-pandemic levels.
Jewellery consumption was up 10% to 523 tonnes, while demand for the first nine months of 2022 was up 2% to 1454t.
Investment demand (excluding over-the-counter) for the September quarter was 47% lower at 124t, reflecting weak sentiment among some investor segments.
Bar and coin investment was up 36% but was offset by ETF outflows.
"Central banks continued to accumulate gold, with purchases estimated at a quarterly record of nearly 400t," the WGC said.
Technology demand was down 8%.
Total gold supply increased 1% to 1215t with a sixth consecutive quarter of YoY growth in mine production was partly offset by lower levels of recycling.
The gold price fell by 8% during the September quarter due to US dollar strength following interest rate rises.