Africa-Press – Mauritius. Global gold demand expanded by 3% on an annual basis in the second quarter of the year, reaching a record $132 billion in value, according to a report by the World Gold Council (WGC) released on Thursday.
The demand amounted to 1,249 tons during the second quarter of 2025.
With strong investment flows, increasing geopolitical uncertainty, and price momentum sustaining demand, the US dollar value of global gold demand increased by 45% year-over-year in the second quarter, reaching a record $132 billion.
Gold investments also grew by 78% year-on-year during the same period, with inflows of 170 tons over the quarter.
“Asian-listed funds were major contributors at 70 tons, keeping pace with US flows. Combined with record inflows in Q1, global gold exchange-traded fund (ETF) demand reached 397 tons, the highest first-half total since 2020,” the WGC said in a statement.
Gold exchange-traded funds continued to be the primary driver of total demand, while investments in bars and coins increased by 11% year-over-year.
“Chinese investors led the way with a notable 44% year-on-year increase to 115 tons, while Indian investors continued to add to their holdings, totaling 46 tons in Q2,” it said.
Central banks, however, continued their purchases at a slower pace in the second quarter, adding 166 tons of gold.
Despite the slowdown in central bank gold purchases, they still remain at quite high levels due to ongoing economic and geopolitical uncertainties.
“Global markets have navigated a volatile start to the year marked by trade tensions, unpredictable US policy shifts, and frequent geopolitical flashpoints,” said Louise Street, senior markets analyst at the WGC.
“The robust investment activity we have seen in the first half of 2025 underscores gold’s role as a hedge against economic and geopolitical risks. Ongoing market volatility, coupled with gold’s impressive price performance in recent months, has also generated significant momentum, drawing capital from investors around the globe,” she noted.
Street also emphasized that gold outperformed many major asset classes with a 26% increase in value in dollar terms in the first half of the year.
Stating that it is possible that gold could trade within a relatively narrow range in the second half of 2025, Street said, on the other hand, the macroeconomic environment remains highly unpredictable, which may underpin further gains for gold.
“Any material deterioration in global economic or geopolitical conditions could further amplify gold’s safe-haven appeal, potentially pushing prices higher still,” she added.
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