World Gold Council reports record demand for precious metal in first quarter of 2025

According to a report by the World Gold Council (WGC), global gold demand rose to 1,206 tons in the first quarter of 2025, up 1% from the same period last year. The increase was fueled by three key factors: strong retail investment in physical bars and coins, renewed interest in gold-backed exchange-traded funds (ETFs), and continued purchases by central banks.

Experts point to global economic uncertainty, driven by the recent US trade policy shifts, as a major factor behind the surge in demand. Both investors and central banks are increasingly turning to gold to hedge their portfolio risks. Analysts add that demand remains strong even as geopolitical tensions stabilize, since trust in US Treasuries isn’t what it used to be.

The report shows gold market fundamentals remain healthy despite a 21% decline in jewelry demand, as strong investment flows continue to support the sector. Notably, Asian investors have been driving ETF demand, with Chinese purchases outpacing North American buying activity in the past month.