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According to the latest Gold Demand Trends report from the World Gold Council (WGC), the Global Gold Demand was recorded in the second quarter of 2025, in the second quarter of 2025, operating with the price of the investor’s hunger and the highest average gold recorded in a quarter.
While the total demand for volume increased only 3 percent year-old year to 1,249 metric tonnes, WGC referred to a 45 percent increase in the context of the Q2 2024, as the prices increased by an average to $ 3,280.35 an ounce.
According to WGC data, investment flows, especially the gold-supported exchange-traded funds (ETFs) and physical bars and coins, were primary forces behind the growth.
ETF and bar demand dominates, central bank slows down despite purchasing demand
Overall, the demand for investment rose in Q2 78 percent year-on-year, which was led by ETF with a total of 170 MT. Combined with 227 MT of Q1 with a record-setting H1 2020, 397 MT-Since 397 metric tons of strong six-month performance brings first-half-ETF.
The demand for bar and coin also remained strong, especially in China and Europe, where investors responded to the rising price and traditional role of gold. Retail investment in China also exceeded the consumption of jewelery for the quarter, which has been reversed from previous years.
The WGC also mentioned that the report of continuous interest and healthy institutional demand from investors of global high net worth contributed to 170 MT OTC investment and stock changes in Q2.
On the other hand, central banks added 166 metric tonnes of gold in the official reserves in Q2, a decline of 33 percent quarter-by-fourths but still 41 percent above the average quarterly level seen between 2010 and 2021.
Although the speed of accumulation has slowed down, WGC maintains a creative approach. Data from recent central bank surveys show that the intention of adding gold in the coming year is strong.
Jewelery Sector Contracts, Technology Use Slips on Trade Uncertainty
Unlike the flow of investment, the demand for jewelery during Q2 collapsed rapidly in context of quantity during Q2, declining 341 metric tons in global consumption, 30 percent at an average of five years and the lowest after Q3 2020.
WGC found that almost all 31 countries saw a year-on-year decline in demand for jewelery tracked, as the only exception with Iran.
However, in terms of value, the demand for jewelery increased by 21 percent year-on-year to US $ 36 billion, highlighting the price-length deviation that has become more pronounced in 2025.
For technical applications, the demand for gold fell 2 percent to 79 metric tons in Q2, with a lot of accounting for most of the electronics sector.
WGC stated that trade stress, especially through August, expanded American tariff uncertainties, was heavy on the East Asian manufacturing spirit.
Despite the widespread recession, gold remained an area of strength used in AI -related technologies, which offers a partial buffer to fall in electronics applications.
My production hits new Q2 record
On the side of the supply, the gold mine production rose to 909 metric tonnes in Q2, a new second quarter record, which helps to increase the total supply up to 1,249 metric tons of 3 percent year-by-year. Recycling activity also increased slightly, from 4 percent to 347 metric tons, the highest for any Q2 since 2011.
Nevertheless, WGC noticed that the recycling is “in relative to the price performance” due to strong holding behavior and limited signs of domestic financial crisis.
Outlook through 2025
Given the second half of the 2025, WGC is expected to remain the firm to the demand for investment, although possibly a short -term dollar strength and a slow due to flexible equity markets.
Nevertheless, the possibility of low interest rates, which are widely expected to start in Q4, can rule at the speed.
The report concluded, “There is more possibility of more investor interest in gold from an opportunity cost point of view in low policy rates.”
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Securities disclosure: I, Giann Liguid, no direct investment in any company mentioned in this article is interested.
