Global gold demand saw a 3% year-on-year increase in the second quarter of 2025, reaching 1,249 tonnes, according to the World Gold Council. The increase occurred amidst a high price environment, primarily driven by strong investment flows fuelled by an unpredictable geopolitical landscape. Gold exchange-traded funds (ETFs) remained a key investment pillar, with significant inflows in April and June resulting in a net quarterly gain of 170 tonnes in global holdings. The World Gold Council is a market development organisation for the gold industry. They aim to stimulate and sustain demand for gold, provide industry leadership, and be the global authority on gold.
Bar and coin investment also rose, with Chinese and Indian investors leading the charge. However, trends diverged in Western markets, as European investment more than doubled while US demand halved. Central banks continued buying gold, albeit at a slower pace, adding 166 tonnes. Despite a decline in jewellery demand in China and India, the global jewellery market increased in value terms to US$36 billion. Total gold supply increased, with mine production reaching a new second-quarter record.
Australian gold ETFs experienced continued inflows in Q2 2025, adding US$169 million. This lifted total assets under management to US$5 billion and holdings to 47.3 tonnes, reaching month-end peaks. Demand for Australian gold ETFs totalled 4.8 tonnes in the first half of 2025, while inflows accumulated to US$426.5 million. Bar and coin demand in Australia also climbed 18% year-on-year.
Shaokai Fan from the World Gold Council noted structural shifts favouring gold, including regulatory changes in China and a weaker US dollar. He stated that a ‘fear of asset debasement’ is driving investors towards gold. Total gold consumption in Australia increased 6% during the quarter, underscoring the growing investor appetite for gold.
