Gold demand rises 3 percent in Q2 2025 amid strong investment flows: WGC.

Gold demand reached 1,249 tons in the second quarter of 2025, a 3 percent increase year-on-year amid a high price environment. Strong gold investment flows largely fuelled quarterly growth, as an increasingly unpredictable geopolitical environment and price momentum sustained demand, according to the World Gold Council’s Q2 2025 Gold Demand Trends report.

“Global markets have navigated a volatile start to the year marked by trade tensions, unpredictable U.S. policy shifts and frequent geopolitical flashpoints. The robust investment activity we have seen in the first half of 2025 underscores gold’s role as a hedge against economic and geopolitical risks,” said Louise Street, senior markets analyst at the World Gold Council.

Gold ETF investment remained a key driver of total demand, with inflows of 170 tons over the quarter, compared with small outflows in Q2 2024. Asian-listed funds were major contributors at 70 tons, keeping pace with U.S. flows. Combined with record inflows in Q1, global gold ETF demand reached 397 tons, the highest first-half total since 2020.

The report also revealed that total bar and coin investment increased 11 percent year-on-year, adding 307 tons. Chinese investors led the way with a notable 44 percent year-on-year increase to 115 tons, while Indian investors continued to add to their holdings, totaling 46 tons in Q2.

However, divergent trends emerged in Western markets as European net investment more than doubled to 28 tons while U.S. bar and coin demand halved to 9 tons in the second quarter. On the other hand, jewelry demand continued to decline, with the volume of consumption down 14 percent and nearing low levels last seen in 2020 during the COVID pandemic. Jewelry demand in China was down 20 percent and Indian demand fell 17 percent year-on-year. However, in value terms, the global jewelry market increased to a total of $36 billion.

Source: Economymiddleeast