Glittering Gains: Global Gold Demand Sees 3% Surge Amid Price Peaks

Global gold demand has surged by 3% year-on-year in the second quarter of 2025, according to a report from the World Gold Council (WGC) released on Thursday. This growth was primarily fueled by strong investment flows amid an environment marked by high gold prices and unpredictable geopolitical developments.

Investment in gold ETFs served as a major catalyst, with significant inflows recorded in Asian markets, matching the US trends. The overall demand for gold in ETFs reached 397 tonnes in the first half of the year, marking the highest since 2020. On the other hand, total bar and coin investments also saw an 11% increase, with Chinese investors at the forefront, contributing significantly to the demand.

Meanwhile, central banks added 166 tonnes of gold purchases, led by countries like Poland, Turkey, and Azerbaijan. Despite a slight slowdown in purchases, central bank buying remained robust due to global economic uncertainties. Conversely, jewellery demand saw a decline, dropping by 14% in volume, although its market value rose to USD 36 billion.

(With inputs from agencies.)