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Gulf Business
02-05-2025
- Business
- Gulf Business
Gold demand rises 1% in Q1; ETFs surge, prices hit record highs: WGC
Image: Getty Images Global gold demand rose 1 per cent year-on-year in the first quarter of 2025 to 1,206 tonnes, driven by a sharp increase in investment demand as prices surged past $3,000 per ounce, according to the World Gold Council's (WGC) latest The rebound in gold-backed exchange-traded funds (ETFs) was the standout driver, with investment demand more than doubling to 552 tonnes — up 170 per cent year-on-year and the highest level since Q1 2022. ETF inflows alone reached 226 tonnes, boosted by price momentum and rising global uncertainty linked to tariff policies and recessionary fears. 'Over the past 10 months investors have returned to gold ETFs, ramping up their allocations since Q3 last year,' said Louise Street, senior markets analyst at the WGC. 'Already in April, Asian inflows have stormed past their Q1 total. However, there is still room for growth, with global gold ETF holdings sitting 10 per cent below their 2020 high.' Gold bar and coin demand rises Total bar and coin demand remained strong, rising 3 per cent year-on-year to 325 tonnes. This increase was largely driven by a surge in retail investment in China, which posted its second-highest quarter on record. The strength in Eastern markets helped offset a 22 per cent decline in demand from US investors and a modest recovery of 12 tonnes in Europe, albeit from a low base in Q1 2024. In the Middle East, gold's traditional appeal remained evident. 'Gold investment demand in the Middle East remained resilient in Q1 2025, underpinned by continued geopolitical uncertainty and positive price expectations,' said Andrew Naylor, head of Middle East and Public Policy at the WGC. 'Notably, Saudi Arabia saw a 15 per cent year-on-year increase in bar and coin demand, while jewellery demand in the kingdom rose 35 per cent – bucking regional trends.' Central banks continued to be net buyers for the 16th consecutive year, adding 244 tonnes to global reserves in Q1 2025. Although this was 21 per cent lower than Q1 2024, it was in line with the average quarterly purchase volumes recorded over the past three years. Jewellery demand hit Jewellery demand, meanwhile, was impacted by the record price environment, with gold hitting 20 all-time highs during the quarter. Global jewellery volumes fell to their lowest since 2020, when Covid-related restrictions curtailed demand. Despite this, consumer spending rose 9 per cent year-on-year to $35bn in Q1, as price appreciation drove value higher. All markets except China recorded increases in the value of gold jewellery demand. On the supply side, gold remained relatively flat at 1,206 tonnes. A record Q1 in mine production was largely offset by slightly lower levels of recycling. Technology demand was stable at 80 tonnes compared to the same period last year. 'It's been a bumpy start to the year for global markets as trade turmoil, unpredictable US policy announcements, sustained geopolitical tensions and a return of The WGC expects continued demand from institutions, individual investors, and central banks, as persistent global uncertainty enhances gold's appeal as a safe haven asset.


Business Mayor
30-04-2025
- Business
- Business Mayor
Global gold demand up 1% YoY in January-March 2025
Globally, the demand for gold in the January to March period stood at 1,206 tonne, a one per cent increase year-on-year, in a record high price environment, in which gold surpassed US$3,000 per troy ounce, according to the figures released by the World Gold Council (WGC) on Wednesday. The figures are for the Q1 of calendar 2025. The gold ETF revival fuelled a more-than doubling of total investment demand to 552t, a 170 per cent year-on-year increase and the highest since Q1 2022. ETF inflows accelerated around the world, totalling 226t in the first quarter, as price momentum and tariff policy uncertainty drove investors to gold as a safe haven. Total bar and coin demand increased 3 per cent year-on-year, remaining elevated at 325t during Q1, spurred by a surge of retail investment in China, which posted its second-highest quarter on record. Eastern investors drove much of the global demand for bar and coin, offsetting Western weakness as appetite in the US dropped 22 per cent year-on-year, alongside a modest 12t recovery in Europe, but from a very low base in the same quarter last year. Central Banks are now entering their 16th consecutive year of net-buying, adding 244t to global reserves in Q1 amidst ongoing global uncertainty. While this level of demand was 21 per cent lower year-on-year, it remains robust and in line with the quarterly average for the last three years of sustained, strong buying. Read More Jaguar Joyrides: Symphony Of Sensational Style And Speed Unsurprisingly, jewellery demand was negatively impacted as gold hit 20 all-time price highs in Q1. Volumes reached their lowest point since demand was stifled by the COVID pandemic in 2020. However, the jewellery market remained relatively resilient, especially in value terms, given extreme price pressures. The first quarter saw a 9 per cent year-on-year increase in consumer spending to US$35bn, with every market except China seeing an increase in the value of gold jewellery demand. Total gold supply was relatively flat year-on-year, at 1,206t in the first quarter, as record Q1 mine production was offset by slightly lower recycling. Technology demand was also stable at 80t, compared to Q1 2024. Louise Street, Senior Markets Analyst at the World Gold Council, commented: 'It's been a bumpy start to the year for global markets as trade turmoil, unpredictable US policy announcements, sustained geopolitical tensions, and a return of recessionary fears have created a highly uncertain environment for investors. In this context, investment demand for gold has paved the way for the highest level of first-quarter demand since 2019. 'Over the past 10 months, investors have returned to gold Exchange Traded Funds (ETFs), ramping up their allocations since Q3 last year, and already in April, Asian inflows have stormed past their Q1 total. However, there is still room for growth, with global gold ETF holdings sitting 10 per cent below their 2020 high. 'Looking ahead, the broader economic landscape remains difficult to predict, and that uncertainty could provide upside potential for gold. As turbulent times persist, safe haven demand for gold from institutions, individuals and the official sector could climb higher in the months to come.'


South China Morning Post
30-04-2025
- Business
- South China Morning Post
Chinese investors snap up gold ETFs in first quarter amid global economic uncertainty
Chinese investors rushed to buy exchange-traded funds (ETFs) tracking gold in the first quarter of the year, as prices surged to record highs on rising geopolitical tensions amid the second term of US President Donald Trump. Advertisement According to a report from the World Gold Council on Wednesday, Chinese investors poured a total of 16.7 billion yuan (US$2.3 billion) into gold ETFs in the first quarter, increasing their total holdings by 23 tonnes – the highest quarterly net inflow on record. The council is a London-based international trade association. The surge pushed the total assets under management and aggregate holdings of China's gold ETFs to all-time highs of 101 billion yuan and 138 tonnes, respectively. Chinese investors' enthusiasm for gold ETFs was in line with global market trends. Total gold investment – including gold bars, coins, and ETFs – reached 552 tonnes in the first quarter. Chinese purchases of gold bars and coins accounted for 124 tonnes, representing 38 per cent of the global total, while Chinese gold ETF purchases made up 10 per cent of global demand at 226 tones, the gold council said. 'It's been a bumpy start to the year for global markets as trade turmoil, unpredictable US policy announcements, sustained geopolitical tensions and a return of recessionary fears have created a highly uncertain environment for investors,' said Louise Street, a senior markets analyst at the World Gold Council. 'In this context, investment demand for gold has paved the way for the highest level of first-quarter demand since 2016.' Advertisement 'Over the past 10 months, investors have returned to gold ETFs, ramping up their allocations since Q3 last year, and already in April, Asian inflows have stormed past their Q1 total. However, there is still room for growth, with global gold ETF holdings sitting 10 per cent below their 2020 high.'


Mint
30-04-2025
- Business
- Mint
Gold demand shone in early 2025 on renewed ETF inflows, report says
Gold demand rose in the first quarter of the year, fueled by a revival of gold exchange-traded fund inflows, according to an industry body report. Total gold demand for the first three months of 2025 rose 1% on year to 1,206 metric tons, the strongest start to a year since 2016, the World Gold Council said Wednesday in a new report on gold-demand trends. ETF inflows picked up in the first quarter, totaling 226 tons. A year prior, ETFs saw outflows of 113.0 tons, and inflows of just 18.7 tons in the fourth quarter of 2025. These inflows accelerated across the world, driving a more-than doubling of total investment demand to 552 metric tons. Already in April, Asian ETF inflows have surpassed their first-quarter total. 'This reflects mounting macroeconomic and geopolitical uncertainty, including U.S.-China trade tensions and sustained gold price strength, which have reinforced gold's role as a safe-haven asset. Chinese investors, in particular, are increasingly turning to ETFs as a liquid and flexible alternative amid continued weakness in equities," said Louise Street, senior market analyst at the WGC. There is still room for further growth, however, with global gold ETF holdings sitting 10% below their 2020 high. The healthy demand for gold has been driven by trade turmoil, unpredictable U.S. policy announcements, persistent geopolitical tensions and rising concerns around recession. The resulting safe-haven demand helped propel continuous gold future prices to an all-time record high on April 22 of $3,509.90 a troy ounce. New York Mercantile Exchange gold futures are up nearly 26% in the year to date. Looking ahead, investment demand should continue to gather pace given near-term stagflation risks, medium-term recession risks, elevated stock-bond correlations, U.S. deficit growth and continued geopolitical worries, the WGC said. Elsewhere, central-bank demand slowed in the first quarter to 244 tons of purchases. While 21% lower on-year, this remains robust and in-line with the quarterly average of the last three years, the report said. Central banks are strategic, long-term buyers and typically less sensitive to short-term price movements or events. Barring any structural changes, they should continue to be a consistent, healthy source of demand through 2025, even if the pace of purchases fluctuates, Street said. On the other hand, gold demand for jewelry has sharply fallen on year, driven by higher prices. Weakness was seen in every major region, with global demand falling 21% on year and sharp falls in China and India. Volumes reached their lowest levels since demand was stifled by the Covid-19 pandemic in 2020. That said, in value terms, consumer spending on gold jewelry rose 9% on year to $35 billion, the WGC said. Value growth was seen in every market bar China, suggesting consumers were prepared to stretch their budgets. Technology demand, meanwhile, was unchanged on-year at 80 tons, as growth in artificial intelligence-related demand was countered by high prices and declines in the wireless sector, industrial and decorative applications and dentistry demand. Write to Joseph Hoppe at


Zawya
30-04-2025
- Business
- Zawya
Surging gold ETFs fuel Q1 demand
The World Gold Council's Q1 2025 Gold Demand Trends report reveals total quarterly gold demand (including OTC [1]) was 1,206t, a 1% increase year-on-year, in a record high price environment, in which gold surpassed US$3,000/oz. The gold ETF revival fuelled a more-than doubling of total investment demand to 552t, a 170% year-on-year increase and the highest since Q1 2022. ETF inflows accelerated around the world, totalling 226t in the first quarter as price momentum and tariff policy uncertainty drove investors to gold as a safe haven. Total bar and coin demand increased 3% y/y, remaining elevated at 325t during Q1, spurred by a surge of retail investment in China, which posted its second-highest quarter on record. Eastern investors drove much of the global demand for bar and coin, offsetting Western weakness as appetite in the US dropped 22% year-on-year, alongside a modest 12t recovery in Europe, but from a very low base in the same quarter last year. Central Banks are now entering their 16th consecutive year of net-buying, adding 244t to global reserves in Q1 amidst ongoing global uncertainty. 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. Unsurprisingly, jewellery demand was negatively impacted as gold hit 20 all-time price highs in Q1. Volumes reached their lowest point since demand was stifled by the COVID pandemic in 2020. However, the jewellery market remained relatively resilient, especially in value terms, given extreme price pressures. The first quarter saw a 9% year-on-year increase in consumer spending to US$35bn with every market except China seeing an increase in the value of gold jewellery demand. Total gold supply was relatively flat year-on-year, at 1,206t in the first quarter as record Q1 mine production was offset by slightly lower recycling. Technology demand was also stable at 80t, compared to Q1 2024. Louise Street, Senior Markets Analyst at the World Gold Council, commented: 'It's been a bumpy start to the year for global markets as trade turmoil, unpredictable US policy announcements, sustained geopolitical tensions and a return of recessionary fears have created a highly uncertain environment for investors. In this context, investment demand for gold has paved the way for the highest level of first quarter demand since 2016. 'Over the past 10 months investors have returned to gold ETFs, ramping up their allocations since Q3 last year, and already in April, Asian inflows have stormed past their Q1 total. However, there is still room for growth, with global gold ETF holdings sitting 10% below their 2020 high. 'Looking ahead, the broader economic landscape remains difficult to predict, and that uncertainty could provide upside potential for gold. As turbulent times persist, safe haven demand for gold from institutions, individuals and the official sector could climb higher in the months to come.' Andrew Naylor, Head of Middle East and Public Policy at the World Gold Council, commented: "Gold investment demand in the Middle East remained resilient in Q1 2025, underpinned by continued geopolitical uncertainty and positive price expectations. Notably, Saudi Arabia saw a 15% year-on-year increase in bar and coin demand, while jewellery demand in the Kingdom rose 35% – bucking regional trends. Despite broader declines across the region, these figures highlight gold's enduring appeal in the Gulf as both a store of value and a culturally significant asset. As the economic environment remains volatile, we expect investment interest across the region to stay firm in the months ahead." The Gold Demand Trends Q1 2025 report, which includes comprehensive data provided by Metals Focus, can be viewed here. For further information please contact: Stephanie Cadman, World Gold Council, E: About World Gold Council We are a membership organisation that champions the role gold plays as a strategic asset, shaping the future of a responsible and accessible gold supply chain. Our team of experts builds understanding of the use case and possibilities of gold through trusted research, analysis, commentary, and insights. We drive industry progress, shaping policy and setting standards for a perpetual and sustainable gold market. You can follow the World Gold Council on X (Twitter) at @goldcouncil and LinkedIn. [1] Total gold demand refers to the total of jewellery fabrication, technology fabrication, investment, net purchases by central banks, and over-the-counter (OTC) transactions (also referred to as 'off exchange' trading) that take place directly between two parties, unlike exchange trading which is conducted via an exchange.