Record demand for gold persisted into early 2025, buoyed by strong investor interest and continued purchasing by central banks, according to figures published by the World Gold Council.
Total demand in the first quarter of the year rose one per cent compared with the same period in 2024, reaching an all-time high of $35bn (£26bn) in value — a 40 per cent year-on-year increase. Investors flocked to the traditional safe-haven asset amid renewed geopolitical uncertainty and growing concerns surrounding Donald Trump’s proposed tariff policy in the United States.
Investor demand soared by 170 per cent in volume terms, rising from 204.4 tonnes in the first quarter of 2024 to 551.9 tonnes between January and March this year. This notable uptick came despite a significant 20 per cent surge in gold prices over the same period. The report does not account for the post-reporting period spike that followed Trump’s sweeping Liberation Day tariffs on 2 April, which pushed the metal’s price above $3,500 per troy ounce for the first time.
Louise Street, an analyst at the World Gold Council, attributed much of the increase to renewed flows into gold-backed ETFs. “The main reason [for the jump in demand] was a sharp acceleration in ETF inflows that we saw during the quarter,” she told City A.M. “Investors added 226 tonnes to their global holdings, which is a stark contrast to the outflows we recorded last year.”
Gold-backed ETFs remain a popular avenue for investors looking to gain exposure to the precious metal without the logistical burden of physical storage and security.
While central bank demand softened slightly compared with recent peaks, official institutions still collectively added 244 tonnes to reserves – continuing a multi-year trend. The National Bank of Poland led acquisitions once again, with the People’s Bank of China ranking second in net gold purchases.
Global gold demand remains at levels not seen since the early days of the pandemic, even as the precious metal trades at historically high prices.
