Record -breaking gold demand: Investor appetite rises to new heights in Q2 2025

ETFs and Balk question dominate, the central bank purchase slows down despite the question

The overall investment question climbed 78 percent on an annual basis in the second year, led by ETF inflow of a total of 170 tons. Combined with the 227 tons of Q1, this brings this the first half of the ETF question to 397 tons-the strongest six-month performance since the record setting H1 2020.

The demand from the rod and the coin also remained robust, in particular in China and Europe, where investors responded to the rising price and the traditional role of Gold as a value shop. Retail investments in China even surpassed the consumption of jewelry for the quarter, a reversal of previous years.

The WGC also noted that continuous interest of the global net value investors and reports of a healthy institutional question has contributed to 170 tonnes of OTC investments and share changes in Q2.

On the other hand, Central Banks added 166 tons of gold to official reserves in Q2, a decrease of 33 percent quarter-on-quarter, but still 41 percent above the average quarterly level seen between 2010 and 2021.

Although the pace of the accumulation is delayed, the WGC maintains constructive prospects. Data from recent surveys from the Central Bank shows that the intention to add gold remains strong in the coming year.

Jewelry sector contracts, technology use briefs about trade insaccre

In stark contrast to investment flows, the demand for jewelry in volume in volume fell during the second quarter, with global consumption decreased to 341 tons, 30 percent under the five -year average and the lowest since Q3 2020.

The WGC showed that almost all 31 countries kept a decrease in jewelry demand on an annual basis, with Iran as the only exception.

Nevertheless, the demand from the jewelry, in value, increased by 21 percent on an annual basis to US $ 36 billion, with the emphasis on the price defect that became more pronounced in 2025.

With regard to technological applications, the demand for gold decreased by 2 percent on an annual basis to 79 tons in Q2, with the electronics sector going to be good the majority of the decline.

The WGC noted that trade tensions, in particular the expansion of American rate uncertainties until August, weighed heavily on the sentiment of East Asian production.

Despite the wider delay, gold that was used in AI-related technologies remained a strength of strength, and offered a partial buffer for the decrease in electronic applications.

Mijnproduction affects new Q2 record

On the supply side, the production of the gold mine rose to 909 tons in Q2, a new record for the second quarter, which helped the total supply to 1,249 tons and an increase of 3 percent on an annual basis. Recycling activity also increased slightly, an increase from 4 percent to 347 tons, the highest for every Q2 since 2011.

Nevertheless, the WGC noted that recycling is “moderate compared to price performance”, due to strong holding behavior and limited signs of financial emergencies.

Outlook until 2025

Looking at the second half of 2025, the WGC expects the investment question to remain firm, although possibly at a slower pace due to the power of dollar and resilient stock markets in the short term.

Nevertheless, the prospect of lower interest rates, which is generally expected to start in the fourth quarter, can accommodate the momentum.

“Lower policy rates are likely to generate more interests in gold from a perspective of alternative costs,” concluded the report.