According to the World Gold Council's Gold Demand Trends Report for Q2/2025, total global gold demand in the last quarter reached 1,249 tons, up 3% compared to the same period in 2024. This increase mainly came from strong investment flows into the gold market in the context of continuous peaks in precious metal prices and an increasingly unstable geopolitical environment.
In the first half of 2025, gold prices recorded a sharp increase of up to 26% in USD terms, outperforming many other major assets (Illustration photo)
Gold exchange-traded funds (ETFs) were the key inflows, reaching 170 tonnes – a reversal from the slight outflows in the second quarter of last year. ETFs in Asia and the US contributed almost equally, with around 70 tonnes each. Combined, the first two quarters of the year brought total demand from ETFs to 397 tonnes, the highest first-half level since 2020 – when global markets were volatile due to the COVID-19 pandemic.
Central bank buying continues to support gold prices. Their holdings increased by 166 tonnes in the second quarter, although the pace of purchases slowed somewhat compared to previous quarters. However, the World Gold Council’s annual survey found that 95% of central bank reserve managers believe the trend of rising gold reserves will continue over the next 12 months, reflecting concerns about the global economic outlook.
Mr. Shaokai Fan, Director of Asia- Pacific (excluding China) and Head of Global Central Banks at the World Gold Council, commented: "Gold investment remains high due to safe-haven demand and rising capital inflows, while retail investment is expected to remain stable or decline slightly. Gold bar and coin investment also recorded good growth, mainly due to significant year-on-year increases in China and Europe. Gold jewelry demand is likely to continue to decline due to high gold prices and slow economic growth."
On the retail side, total investment in gold bars and coins rose 11% year-on-year to 307 tonnes. China led the way with 115 tonnes, followed by India at 46 tonnes. In Europe, physical demand doubled to 28 tonnes, in contrast to the US, where purchases halved to 9 tonnes.
The ASEAN region saw a significant increase in investment demand for gold, with the exception of Vietnam. The devaluation of the local currency coupled with the high value of the USD caused domestic gold prices to skyrocket to record levels. This created an affordability barrier, causing gold demand in the second quarter to fall 20% year-on-year to 9 tonnes. However, looking at the long-term trend, demand remained high, and the total value of gold invested in Vietnam actually increased by 12% in USD terms year-on-year to $997 million.
In contrast, global gold jewelry demand fell 14% due to high prices and slow economic growth. China and India saw declines of 20% and 17%, respectively. In Vietnam, the declines were 20% year-on-year and 29% compared to the first quarter. However, in value terms, the jewelry market still reached $36 billion globally, showing that purchasing power is concentrated in the high-end segment.
Total gold supply in the second quarter increased by 3% to 1,249 tonnes. Mining output increased slightly to a record high, while recycling increased by 4% year-on-year but remained relatively low given the high gold price.
World Gold Council comments on gold price trends
Ms. Louise Street, Senior Market Analyst at the World Gold Council, commented:
“Global markets have had a volatile start to the year due to trade tensions, unpredictable changes in US policy and persistent geopolitical flashpoints. Strong investment activity in the first half of 2025 has highlighted gold’s role as a hedge against economic and geopolitical risks. The continued market volatility, coupled with the impressive price performance of gold in recent months, has provided a major impetus, attracting capital flows from investors around the world.
"Gold prices have already recorded a strong gain of 26% in US dollar terms in the first half of 2025, outperforming many other major asset classes. With such a strong start, gold prices are likely to trade within a relatively narrow range in the second half of 2025. However, the macroeconomic environment remains highly unpredictable, which could continue to favor gold's upward momentum. Any significant deterioration in the global economic or geopolitical situation could increase gold's appeal as a safe-haven asset, pushing gold prices higher."
Source: https://nld.com.vn/hoi-dong-vang-the-gioi-noi-ve-bien-do-tang-gia-vang-cuoi-nam-2025-196250731145046107.htm
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