Investment drives gold demand in Q2

Demand value rockets to a record US$132bn

Total Q2 gold demand (inclusive of OTC investment) increased by 3% y/y to 1,249t. In value terms, total gold demand jumped 45% y/y to US$132bn.

A second consecutive quarter of hefty demand for global gold-backed ETFs was instrumental in boosting overall Q2 demand. Uncertain global trade policy, geopolitical turbulence and the rising gold price all fuelled inflows. 

Bar and coin investors also joined the fray, attracted by the rising price and gold’s safe-haven attributes. Two consecutive quarters generated the strongest first half for bar and coin investment since 2013.

Central banks remained a key pillar of global demand, adding 166t to global official gold reserves. Although the pace of buying moderated, the outlook for central bank demand remains healthy. 

Jewellery demand volumes and value continued to diverge: y/y declines in tonnage were widespread, while spending on gold jewellery saw universal gains. Volumes were very muted, almost retreating back to 2020 pandemic levels.

Gold used in technology came under pressure from the potential impact of US tariffs, although growing demand for AI-related applications remains an area of strength.

Highlights

  • The LBMA (PM) Gold Price hit a new record in June.
    The average quarterly price was a record US$3,280.35/oz, up by 40% y/y and 15% q/q.
  • Total supply increased 3% y/y. 
    Initial estimates for mine production suggest a Q2 record of 909t.
  • Recycling activity remained subdued despite record prices.
    Indian consumers increasingly opted to exchange old jewellery for new, or to pledge it as collateral against loans.
  • OTC investment and stock changes added 170t to demand in Q2.
    Anecdotal reports suggest that institutional investment remained healthy, with continued interest from global High Net Worth investors.
 

Chart 1: H1 gold demand volume firms, while value rockets

Total H1 demand by sector in tonnes, and value (US$bn)*

Chart 1: H1 gold demand volume firms, while value rockets

Chart 1: H1 gold demand volume firms, while value rockets
Total H1 demand by sector in tonnes, and value (US$bn)*
Sources: Metals Focus, Refinitiv GFMS, World Gold Council; Disclaimer *Data to 30 June 2025.

Sources: Metals Focus, Refinitiv GFMS, World Gold Council; Disclaimer

*Data to 30 June 2025.

Gold supply and demand

Table 1: Quarterly gold supply and demand by sector, tonnes

  Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q/q %
change		 Y/y %
change
Supply
Mine production 896.2 957.4 944.8 833.0 908.6 9 1
Net producer hedging -20.4 -6.5 -18.5 -7.1 -7.1 - -
Total mine supply 875.8 950.9 926.4 825.9 901.5 9 3
Recycled gold 334.2 325.7 358.1 348.5 347.2 0 4
Total Supply 1,210.0 1,276.6 1,284.4 1,174.5 1,248.8 6 3
 
Demand
Jewellery fabrication 417.2 546.6 524.3 425.4 356.7 -16 -14
Jewellery consumption 395.6 460.0 548.7 383.4 341.0 -11 -14
Jewellery inventory 21.6 86.7 -24.4 42.0 15.7 -63 -27
Technology 80.2 82.9 82.8 80.4 78.6 -2 -2
Electronics 66.8 69.1 68.8 67.0 65.8 -2 -2
Other Industrial 11.1 11.6 11.9 11.3 10.8 -4 -3
Dentistry 2.3 2.2 2.2 2.1 2.1 -2 -9
Investment 268.1 365.3 343.4 551.2 477.2 -13 78
Total bar and coin 275.2 270.6 324.7 324.6 306.8 -6 11
Bars 200.2 198.8 236.4 257.7 243.1 -6 21
Official coins 49.6 32.1 52.5 44.3 38.9 -12 -22
Medals/Imitation coins 25.4 39.8 35.8 22.7 24.8 9 -3
ETFs & similar products -7.1 94.7 18.7 226.6 170.5 -25 -
Central banks & other inst. 211.5 199.5 365.1 248.6 166.5 -33 -21
Gold demand 977.0 1,194.3 1,315.7 1,305.6 1,079.0 -17 10
OTC and other 233.0 82.3 -31.2 -131.2 169.8 -229 -27
Total Demand 1,210.0 1,276.6 1,284.4 1,174.5 1,248.8 6 3
LBMA Gold Price (US$/oz) 2,338.2 2,474.3 2,663.4 2,859.6 3,280.4 15 40

Sources: Metals Focus, Refinitiv GFMS, ICE Benchmark Administration, World Gold Council
Note: For an explanation of these terms, please see the Notes and definitions download: https://www.gold.org/goldhub/data/gold-demand-by-country.


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