The World Gold Council’s latest report reveals a 3% year-on-year increase in global gold demand for Q2 2025, reaching 1,249 tonnes. This rise is attributed to strong investment flows driven by geopolitical uncertainties and price momentum. The report highlights a record quarterly demand value of $132 billion, a 45% increase from the previous year.
Investment in gold-backed exchange-traded funds (ETFs) was a significant contributor, with 170 tonnes of inflows compared to outflows in Q2 2024. Asian-listed funds played a crucial role, contributing 70 tonnes, matching US inflows. This trend resulted in the highest first-half global gold ETF demand since 2020.
Singapore mirrored this global trend, with bar and coin demand rising 37% year-on-year to 2.2 tonnes, marking the second-highest quarterly total on record. In contrast, jewellery demand in Singapore fell 8% due to high gold prices, a trend seen across the region.
Central banks continued to purchase gold, albeit at a slower pace, adding 166 tonnes in Q2. Despite this slowdown, central bank buying remains strong, with 95% of reserve managers expecting global reserves to increase over the next year.
Shaokai Fan of the World Gold Council noted, “Amid geopolitical tensions and market volatility, gold continues to attract strong investor demand as a safe haven asset.” The report suggests that ongoing economic uncertainties may further bolster gold’s appeal, potentially driving prices higher in the future.
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