According to the World Gold Council's Gold Demand Trends Report Q2/2025, total gold demand in Q2 (including investment in the over-the-counter (OTC) market) reached 1,249 tonnes, up 3% year-on-year amid rising gold prices. Strong investment flows into gold were the main factor driving market growth in this quarter, as the increasingly unpredictable geopolitical environment and the continued rise in gold prices contributed to maintaining gold demand in the market.
Gold ETFs remained the main driver of total demand, with inflows of 170 tonnes in the quarter, in contrast to modest outflows in Q2 2024. Asia-listed funds contributed significantly, with 70 tonnes, on par with US funds. Combined with record inflows in Q1, total global gold ETF demand reached 397 tonnes, the highest H1 level since 2020.
Central banks continue to buy gold, albeit at a slower pace, adding 166 tonnes in Q2 2025. However, central bank purchases remain significantly high due to persistent economic and geopolitical uncertainty. The World Gold Council’s annual survey of central banks found that 95% of reserve managers believe global central bank gold reserves will increase over the next 12 months.
“Gold investment remains strong due to safe-haven demand and rising capital inflows, while retail investment is expected to remain stable or decline slightly,” said Shaokai Fan, Regional Director for Asia- Pacific (excluding China) and Global Head of Central Banks at the World Gold Council. “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.”
Total investment in gold bars and coins also increased by 11% year-on-year to 307 tonnes. Chinese investors led the way with demand reaching 115 tonnes, while Indian investors continued to increase their holdings, totaling 46 tonnes in the second quarter. In Western markets, investment trends were markedly different: net investment in Europe more than doubled to 28 tonnes, while demand for gold bars and coins in the US halved to just 9 tonnes in the second quarter.
High gold prices combined with economic and political uncertainty have driven up investment demand for gold in the ASEAN region in the second quarter. Vietnam is an exception. The depreciation of the local currency and the high USD have caused domestic gold prices to skyrocket to record levels. This has 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 remains high, and the total value of gold invested in Vietnam actually increased by 12% in USD terms year-on-year to $997 million.
Gold jewelry demand continued to decline, with volume down 14%, close to the lows recorded in 2020 during the COVID pandemic. Gold jewelry demand in China fell 20%, and in India it fell 17% year-on-year. However, the global jewelry market grew in value terms, reaching a total of $36 billion.
In ASEAN markets, gold jewelry demand mirrored global trends: consumption fell, but value increased year-on-year. Record high gold prices have constrained purchasing power, with Vietnam recording a 20% year-on-year decline and a 29% decline in gold jewelry demand compared to the first quarter.
Total gold supply increased by 3% to 1,249 tonnes, with mine production rising slightly to a new record in the second quarter. Gold recycling increased by 4% year-on-year, but remained relatively low given the high gold prices.
Louise Street, Senior Market Analyst at the World Gold Council, commented: “Global markets have had a volatile start to the year, driven by 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 significant momentum, attracting capital flows from investors around the world.”
Source: https://doanhnghiepvn.vn/kinh-te/tieu-dung/dong-tien-dau-tu-manh-van-do-vao-mua-vang/20250731025316495
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