WGC: Gold Demand Surged to Hit Record in Q2 This Year

SEATTLE (Scrap Monster): The total gold demand in value terms skyrocketed to a new record of $132 billion during the second quarter of the current year, said the Gold Demand Trends Q2 2025 report published by the World Gold Council (WGC).

One of the main factors driving up total Q2 demand was the strong demand for global gold-backed ETFs for the second consecutive quarter. Rising gold prices, geopolitical concerns, and ongoing uncertainty in global trade policy all contributed to the inflows. Due mostly to significant year-over-year improvements in China and Europe, bar and coin investment also held steady during the quarter. According to the WGC study, overall investment demand increased by 78% from the second quarter of the previous year.

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One of the main drivers of the rising demand for the yellow metal worldwide was still the world's central banks. The world's central banks increased their official gold reserves by about 166 tonnes, albeit at a slower rate. The State Oil Fund of Azerbaijan and the National Bank of Kazakhstan both contributed 16 tonnes of gold, while the National Bank of Poland continued to be the biggest buyer with 19 tonnes.

The demand for gold jewelry, however, has fallen close to pandemic levels as a result of record quarterly gold prices. China and India accounted for a large portion of the drop, with their combined market share falling below 50%.