Gold Demand Trends: Q2 2025

While demand for gold used in AI applications and devices remained strong, overall demand fell slightly in Q2 to 79t (-2% y/y). The 90-day pause in US tariffs announced in April was recently extended to 1 August,¹ creating ongoing uncertainty in the electronics industry. Many East Asian manufacturers continued to frontload orders ahead of potential tariffs and, in parallel, made significant changes to their supply chain strategies. Challenges remain in the form of export restrictions to China, with companies such as Samsung reporting significantly weakened operating profits during the quarter as a result.²

As we noted last quarter, in such an environment it is difficult to be confident in forward-looking expectations and demand data may be more susceptible to future revision.

Electronics

Gold used in electronics fell in Q2 by 2% y/y. The sector landscape is challenging as tariff and export restrictions generate considerable uncertainty and elevated gold prices pressure manufacturers. But demand for AI-related components has remained strong and consumer electronics shipments saw a rebound following the latest tariff pause. Trade headaches look set to continue in H2’25, likely hampering consumer electronic sales. IDC, a major data provider, has recently cut its 2025 smartphone shipment forecast, citing “tariff-driven economic uncertainty and a pullback in consumer spending”.³

AI-related applications supported growth in memory chips and semiconductor demand during Q2. A continued surge in demand for both regular and AI servers resulted in strong memory chip orders. PC manufacturers rushed to fulfil orders and accelerate supply – particularly into the US – further boosting demand. Looking forward, widespread adoption of AI PCs and integration of various AI large models into end products should generate higher demand for memory in 2005, but the predicted slowdown in smartphone shipments may limit growth in the mobile storage sector.

The Printed Circuit Board (PCB) sector also saw growth. This was driven by ongoing upgrades of AI servers, which increases demand for high-end chips, alongside strong shipments of consumer electronics and low earth orbit (LEO) satellite-related applications. But the remainder of the year looks uncertain given the tariff situation.

Gold used in Light Emitting Diodes (LEDs) fell during Q2. This was largely due to reduced orders for backlight panels – the main source of demand in this sector. Chinese panel manufacturers have limited production to mitigate a further decline in panel prices in response to potential tariff issues and cautious forecasts from TV manufacturers. Other areas of demand, such as sensors used in consumer electronics and advanced automation systems, as well as more niche applications including UV curing and medical lighting, all remain strong.⁴ Nevertheless, gold volumes in these areas are currently insufficient to offset the slowdown in shipments of high-volume mainstream products.

The wireless sector recorded a decline in demand in Q2. In response to tariff concerns, component manufacturers reportedly implemented a conservative production strategy, reducing the output of key products like mobile phone power amplifiers (PAs) and WiFi PAs, resulting in a notable decrease in gold usage. Despite this, we maintain our view that demand in this sector has a number of positive longer-term drivers, including the ongoing expansion of data centres and the deepening integration of AI applications in devices. Additionally, 3D-sensing applications are likely to expand into a broader range of consumer electronics, one example being AI glasses, which require imaging, ranging and focusing functionality.

At the aggregate level, two of the four major electronics fabrication hubs around the world recorded y/y increases in gold demand during Q2; South Korea – 7t (2%) and Mainland China and Hong Kong SAR – 20t (2%), while the US fell to 15t (-10%) and Japan fell to 19t (-1%).

Other Industrial & dentistry 

Other industrial and decorative use of gold (primarily plating and gold thread used in traditional Indian clothing) fell 3% y/y to 11t in Q2. China’s fragile economic climate has undermined demand in the luxury and plating industries.

Demand in India was contrastingly healthy as the high gold price supported demand for gold-plated silver jewellery. 

Meanwhile, dentistry saw a 9% y/y drop in gold usage to 2t due to continued substitution to ceramic alternatives. 

Footnotes:

¹Accurate at time of writing.

²Euronews.com | Samsung expects profits to halve as tariffs and export curbs bite | 8 July 2025.

³Reuters.com | IDC cuts global smartphone shipments forecast on tariff volatility | 29 May 2025.

⁴UV curing is a photochemical process where ultraviolet (UV) light is used to rapidly harden or dry inks, coatings, adhesives, and other materials.