Gold investment hits three-year high in first quarter on trade turmoil, WGC says

ReutersApr 30, 2025 6:00 AM

WGC estimates demand from central banks down 21% y/y in Q1
Total investment demand up 170% y/y, to highest since Q1, 2022
Gold jewellery demand fell to lowest since the 2020 pandemic

By Polina Devitt

LONDON, April 30 (Reuters) - Global gold demand including over-the-counter (OTC) trading rose by 1% year-on-year to 1,206 metric tons in the first quarter of 2025 as investment jumped 170%, the World Gold Council said on Wednesday.

Spot gold prices XAU= are up 26% so far this year and have hit multiple record highs as first-quarter investment demand hit the highest since the first quarter of 2022, when global markets were grappling with the immediate consequences of Russia's invasion of Ukraine. GOL/

"It's been a bumpy start to the year for global markets as trade turmoil, unpredictable U.S. policy announcements, sustained geopolitical tensions and a return of recessionary fears have created a highly uncertain environment for investors," the WGC's senior markets analyst Louise Street said.

Driving up investment demand were massive inflows into physically backed gold exchange-traded funds and 14% growth in demand for gold bars in the first quarter. That offset a 32% slump in demand for coins.

However, bar and coin investment in China rose 12% to 124.2 tons, the highest level since the second quarter of 2013's record high, said the WGC, an industry body whose members are global gold miners.

Amid high prices, global gold jewellery consumption, the key category of physical demand, fell 21% to 380.3 tons, the lowest level since the 2020 pandemic.

Central banks, another major source of gold demand, cut purchases by 21% to 243.7 tons in the first quarter, the WGC calculated, based on reported purchases and an estimate of unreported buying.

"While this level of demand was 21% lower year-on-year, it remains robust and in line with the quarterly average for the last three years of sustained, strong buying," it added.

For the full year, the WGC expects gold investment to continue gathering pace and central banks to repeat buying close to the range seen over the past three years due to elevated trade-related risks.

Gold supply and demand by WGC*:

	Q1'24	Q4'24	Q1'25	Q1'25 change y/y (%)
Supply
Mine production	853.4	957.1	855.7	0
Net producer hedging	-8.8	-19.3	5.0	-
Recycled gold	349.6	358.7	345.3	-1
Total supply	1,194.2	1,296.6	1,206.0	1

Demand
Jewellery fabrication:	538.5	520.4	434.0	-19
- Jewellery consumption	480.1	547.5	380.3	-21
- Jewellery inventory	58.4	-27.1	53.6	-8
Technology:	80.2	82.9	80.5	0
- Electronics	66.0	68.8	67.0	2
- Other industrial	11.9	11.9	11.3	-5
- Dentistry	2.3	2.2	2.1	-6
Investment:	204.4	344.7	551.9	170
- Total bar and coin:	317.3	326.0	325.4	3
of which bars	226.8	236.6	257.6	14
of which official coins	66.0	53.5	45.2	-32
of which medals	24.6	35.8	22.6	-8
- ETFs/similar products	-113.0	18.7	226.5	-
Central banks, other inst.	309.9	365.1	243.7	-21
Gold demand	1,133.0	1,313.0	1,310.0	16
OTC and other	61.2	-16.5	-104.0	-
Total demand	1,194.2	1,296.6	1,206.0	1
LBMA gold price ($/oz)	2,069.8	2,663.4	2,859.6	38

*Source: Metals Focus, ICE Benchmark Administration, World Gold Council.

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