Global Gold Demand Rises in Q2 Despite Decline in Central Bank Purchases

A report released Thursday by the World Gold Council revealed an increase in global demand for gold during the second quarter of 2025, driven by a surge in investment demand despite a slowdown in central bank purchases.

According to the report, total global demand for gold — including over-the-counter (OTC) trading — rose by 3% year-on-year to reach 1,248.8 tonnes in Q2, supported by a 78% increase in investment demand.

However, central bank purchases saw a notable decline, with acquisitions totaling 166.5 tonnes during the second quarter — roughly one-third less than in the first quarter. This pullback led to the lowest first-half purchase levels by central banks since 2022.

In terms of consumption, global demand for gold jewelry dropped by 14% to 341.0 tonnes, marking its lowest level since the third quarter of 2020.

Commenting on the findings, John Reade, Chief Market Strategist at the World Gold Council, explained that when gold prices rise significantly, the incentive for central banks to increase their holdings weakens. He noted that the rapid price gains have prompted concerns about potential price corrections, which in turn dampened demand, according to remarks reported by Bloomberg.