Global Gold Demand Rises 3% in Q2 2025 Amid Increased Investment

The World Gold Council announced that global demand for gold, including over-the-counter trading, increased by 3% year-on-year, reaching 1,248.8 tons in the second quarter of 2025, with investment rising by 78%.

Gold prices have risen by 26% so far this year, after hitting a record high of $3,500 per ounce in April, as uncertain global trade policies and geopolitical disruptions fueled investment flows into safe-haven assets.

The World Gold Council, an industry body that includes global gold mining companies, reported that demand for gold bars rose by 21% in the second quarter, compensating for the ongoing decline in demand for coins.

Earlier in July, the World Gold Council announced that physically backed gold exchange-traded funds (ETFs) saw their largest half-yearly inflow since the first half of 2020 during the period from January to June.

Global consumption of gold jewelry, the main category for physical demand, fell by 14%, reaching 341.0 tons, the lowest level since the third quarter of 2020, which was impacted by the COVID-19 pandemic, as rising prices deterred buyers.

The World Gold Council stated that "most of the decline came from China and India, whose combined market share fell to below 50% for the third time in the past five years."

According to the World Gold Council, central banks, another major source of demand for gold, reduced their purchases by 21%, reaching 166.5 tons in the second quarter, based on reported purchases and estimated unreported purchases.

On the supply side, recycling added 4%, reaching 347.2 tons in the second quarter, but remained relatively low despite record prices, as Indian consumers chose to replace old jewelry with new pieces or pawn them as collateral for loans.

The World Gold Council has lowered its estimate for central bank gold purchases this year, adding that the long-term trend of central banks reallocating investments from U.S. assets to gold remains intact.

The World Gold Council also noted that gold ETFs have additional growth potential in the second half of this year, with expectations for a slight decline in retail investments.