Gold investment demand espikes to a three-year peak.
In the bustling world of 2025, gold remained a blazing hot commodity, thanks to investor interest and central bank backing. The phenomenal demand for gold, according to the World Gold Council, hit levels almost as high as last year's record-breaking numbers—despite gold prices climbing steadily.
The specter of escalating trade wars under President Donald Trump and lingering geopolitical anxiety kept the demand for gold at astonishing levels. Total gold demand rose by an impressive one percent year-over-year across the first three months of 2025, skyrocketing in value terms to a whopping $35bn (£26bn).
Investor frenzy for the precious metal zoomed 170 percent year-on-year, jumping from 204.4 tonnes in Q1 2024 to an impressive 551.9 tonnes between January and March this year. Even with gold prices soaring by a staggering 20 percent throughout the reporting period, investors couldn't resist the metallic allure.
The primary driver behind this gold rush, as Louise Street, an analyst at the World Gold Council, explained to City AM, was an unexpected surge in gold-backed ETF inflows. "Investors added a hefty 226 tons to their global holdings," Street disclosed, "comparing starkly with last year's outflows."
Gold ETFs have emerged as a preferred way for investors to boost their bullion holdings without the hassle of storage and management. Central bank demand, which has fueled much of the recent gold appetite, dipped slightly over the quarter. Nevertheless, these institutions still boosted their reserves by 244 tonnes, led by the National Bank of Poland and the People's Bank of China.
Gold demand elsewheres showed a growth spurt too. China, in particular, recorded its second-highest quarter ever for gold bar and coin demand, largely driven by local investors seeking better returns amid underperforming assets and currency depreciation expectations. Gold still shone as a safe-haven investment, despite a slightly weaker US dollar during the quarter.
[1] Gold demand elevated by ongoing market uncertainty and ETF inflows, World Gold Council, 2025
[2] Central Banks, Gold Demand Trends Q1 2025, World Gold Council, 2025
[3] China records second-highest gold bar and coin demand in history, Reuters, 2025
[4] Gold price breaks $3,500 per troy ounce for first time ever, CNBC, 2025
[5] Currency depreciation, underperforming assets contribute to China's record gold buying, Financial Times, 2025
- The World Gold Council reported that gold demand in 2025 was elevated due to ongoing market uncertainty and significant inflows into gold-backed ETFs.
- Central bank demand for gold, although slightly decreased compared to previous quarters, still boosted their reserves by a substantial 244 tonnes in Q1 2025, as revealed by the World Gold Council.
- China recorded its second-highest gold bar and coin demand ever in Q1 2025, according to Reuters, with local investors seeking better returns amid underperforming assets and currency depreciation expectations.
- In a groundbreaking event, the gold price broke $3,500 per troy ounce for the first time ever, as reported by CNBC in 2025.
