Gold Demand Soars Amidst Geopolitical Uncertainty
Global gold demand rose by 3% in Q2 2025, driven by strong investment flows amid geopolitical uncertainty. ETF investments and central bank purchases boosted demand, with Chinese and Indian investors leading bar and coin investments. Despite a decline in jewellery demand, the gold market value increased significantly.
- Country:
- India
Gold demand globally saw a 3% year-on-year rise to 1,249 tonnes in the second quarter of 2025, according to World Gold Council's latest report. This growth has been driven by investment flows and market volatility stemming from unpredictable geopolitical conditions.
Key contributors to this demand spike include ETF investments, which brought in 170 tonnes, and strong bar and coin investments by Chinese and Indian investors, who accounted for significant year-on-year increases. Meanwhile, central banks, led by Poland, Turkey, and Azerbaijan, added 166 tonnes to their reserves.
Despite a dip in jewellery demand, which fell 14% to 341 tonnes, the global market value climbed to USD 36 billion. This highlights gold's increasing allure as a risk hedge, as the commodity outperformed many asset classes with a 26% appreciation in the first half of the year.
(With inputs from agencies.)
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