Global gold demand rises 3% in Q2 2025, driven by strong investment flows: WGC
The report added that the strong gold investment flows boosted quarterly growth, as an increasingly unpredictable geopolitical environment and price momentum sustained demand.
"Global markets have navigated a volatile start to the year marked by trade tensions, unpredictable US policy shifts and frequent geopolitical flashpoints," said Louise Street, Senior Markets Analyst at the World Gold Council.
"Gold recorded a remarkable 26% appreciation in the first half of the year in dollar terms, outperforming many major asset classes. With such an impressive start to the year, it is possible that gold could trade within a relatively narrow range in the latter half of 2025," Street added.
Gold ETF demand also acted as a key demand driver as it experienced an inflow of 170t over the quarter, compared with small outflows in Q2 2024. Particularly, Asian-listed funds were major contributors at 70t, keeping pace with US flows.
Gold ETF also reached its highest first-half total since 2020, with record inflows in Q1, global gold ETF demand reached 397t.
The report by WGC also said that the total bar and coin investment increased by 11 per cent year-on-year, adding 307t, with Chinese investors leading the way with a notable 44 per cent year-on-year increase to 115t, while Indian investors continued to add to their holdings, totalling 46t in Q2.
On the flip side, divergent trends were witnessed in Western markets as European net investment more than doubled to 28t while US bar and coin demand halved to 9t in the second quarter.
Jewellery demand continued to decline, with the volume of consumption down 14 per cent and nearing low levels last seen in 2020 during the COVID pandemic.
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