World Gold Council: Vietnam goes against the global gold investment trend

The World Gold Council (WGC) Gold Demand Trends Report for Q1/2025 said that total global gold demand reached 1,206 tons, up 1% year-on-year. Of which, gold investment demand led the growth, reaching 552 tons, up 170%, mainly due to capital flows back into gold ETFs.

Total global gold demand in the first quarter of 2025 reached 1,206 tons, up 1% year-on-year. Illustrative photo

In the first quarter, exchange-traded funds (ETFs) recorded inflows of 226 tonnes, the highest level since the beginning of 2022. According to the WGC, this reflects the search for safe-haven assets amid global economic, policy and geopolitical uncertainty.

“Amid rising economic and geopolitical risks, investment demand for gold is expected to increase in investment channels such as exchange-traded funds (ETFs) and over-the-counter (OTC), while gold bars and coins are likely to remain attractive. In contrast, demand for gold jewelry is likely to remain weak due to high gold prices,” said Shaokai Fan, WGC Regional Director for Asia-Pacific (excluding China) and Global Head of Central Banks.

In the retail investment market, gold bars and coins continued to maintain their appeal with a slight increase of 3% to 325 tonnes. China was the bright spot, recording the second highest retail investment level in history. Meanwhile, the Western market stagnated, with the US down 22% and Europe only slightly inching up from a very low base.

In the ASEAN region, demand for gold bars and coins has largely followed the global trend. However, Vietnam is an exception. Domestic gold investment demand decreased by 15% year-on-year, mainly due to limited supply, high price differential between domestic and international prices, and a weakening domestic currency that caused gold prices to increase sharply in USD. However, compared to the fourth quarter of 2024, demand for gold bars and coins in Vietnam still increased by 46%.

In Vietnam, gold jewelry consumption in the first quarter decreased by 15% compared to the same period last year, although it still increased by 5% compared to the fourth quarter of 2024. The main reason is still the high gold price, causing consumers to limit spending.

Total gold supply in the first quarter remained at 1,206 tonnes, the same as the same period last year, thanks to record mining output, which offset a slight decline in recycled gold. Gold demand in the technology sector remained stable at 80 tonnes.

"The backdrop of uncertainty from trade, US fiscal policy and geopolitical factors has created a strong impetus for gold investment demand. This is the first quarter since 2016 that total investment demand has reached such a high level," said Louise Street, senior analyst at the WGC.

"In the context of the uncertain world economy, the demand for gold as a safe asset may continue to increase in the coming months," said Ms. Louise Street.

Source: https://nld.com.vn/hoi-dong-vang-the-gioi-viet-nam-nguoc-dong-xu-huong-dau-tu-vang-toan-cau-196250505103323939.htm