Gold demand sparkled brighter in Q2 2025, rising 3% to a hefty 1,249 tonnes—even with prices climbing high! The World Gold Council credits this to savvy investors flocking to gold amid geopolitical drama and price momentum. Louise Street, WGC’s Senior Markets Analyst, sums it up perfectly: “Global markets have navigated a rollercoaster start to the year, with trade wars, unpredictable US moves, and nonstop geopolitical flashpoints.” Gold’s dazzling 26% jump in dollar value during the first half of 2025 left many assets in the dust. Now, the WGC hints gold might chill in a narrow price band for the rest of the year as investors juggle excitement with caution. Gold ETFs, bars, coins, and shifting demand across regions keep this glittering story unfolding!
Gold Demand Rises On Investment Strength
The World Gold Council highlights investment as the main driver behind the 3% rise in gold demand in Q2 2025. Gold investment flows surged amid growing geopolitical uncertainty and ongoing price momentum. Gold ETFs attracted an inflow of 170 tonnes this quarter, reversing the slight outflows recorded in Q2 2024. Asian-listed gold funds played a key role with inflows of 70 tonnes, matching the inflows seen in the US. The total global gold ETF demand reached 397 tonnes during the first half of 2025—the highest since 2020. Investors appear to seek gold as a safe haven in a year marked by volatility and shifting policies.
Regional Trends: Asia Leads Bar And Coin Demand
Bar and coin investments also increased by 11% year-on-year, adding 307 tonnes globally. China led this segment with a striking 44% year-on-year rise, buying 115 tonnes of gold bars and coins. Indian investors added 46 tonnes in Q2, continuing their steady accumulation. Meanwhile, Western markets showed divergent trends. Europe’s net investment more than doubled to 28 tonnes, signaling renewed interest. In contrast, the US demand for bars and coins halved to 9 tonnes, reflecting regional differences in investor preferences. These shifts underscore how different markets respond uniquely to global economic factors.
Jewellery Demand Continues To Decline
While investment demand rose, jewellery consumption saw a significant decline. Jewellery demand dropped 14% in volume during Q2 2025, nearing the low levels last observed during the COVID-19 pandemic in 2020. The decrease reflects changing consumer behavior and market conditions in major jewellery-consuming regions. Despite gold’s price gains, consumers appear cautious about discretionary spending on jewellery. This divergence between investment and jewellery demand points to a shifting gold market landscape where safety and long-term value take precedence over ornamental use.
(With Inputs From ANI)
Also Read: US Copper Tariff Hike: 50% Tariff Could Backfire On American Industry, Warns GTRI
Aishwarya is a journalism graduate with over three years of experience thriving in the buzzing corporate media world. She’s got a knack for decoding business news, tracking the twists and turns of the stock market, covering the masala of the entertainment world, and sometimes her stories come with just the right sprinkle of political commentary. She has worked with several organizations, interned at ZEE and gained professional skills at TV9 and News24, And now is learning and writing at NewsX, she’s no stranger to the newsroom hustle. Her storytelling style is fast-paced, creative, and perfectly tailored to connect with both the platform and its audience. Moto: Approaching every story from the reader’s point of view, backing up her insights with solid facts.
Always bold with her opinions, she also never misses the chance to weave in expert voices, keeping things balanced and insightful. In short, Aishwarya brings a fresh, sharp, and fact-driven voice to every story she touches.
