Global gold consumption falls on back of yellow metal price rally

According to Heraeus Precious Metals, global demand for gold fell significantly in the first three months of 2025. The decline was mainly driven by the record growth in prices for the metal. Between January and March this year, gold consumption reached 514 tons, one of the lowest levels since 2010.

In China, the world’s largest gold consumer, demand for the jewelry dipped to 135 tons, down nearly 30% from last year. The industrial consumption of gold also dropped 4% year-on-year to 18 tons, Mining Weekly reports. 

The main reason for the decline was the rise in prices. In the first three months of 2025, gold surged by 19% from the first quarter of 2024 and its prices averaged more than $3,200 per ounce.

However, declining demand was offset by increasing investment flows. Global demand for bars and coins was up 170% on an annual basis. China saw physical gold investments leaping 30% to 138 tons in the first quarter. Global gold-backed exchange-traded funds (ETF) also posted inflows between January and March this year, Mining Weekly says.