In the second quarter of 2025, global gold demand reached record levels. Total demand rose 3% year-on-year to 1,249 tonnes, while the value of that demand surged 45% to $132 billion, marking the highest quarterly value on record.
Investor interest was a key driver of the increase. Demand for gold ETFs and physical investment in bars and coins strengthened as investors sought protection amid heightened geopolitical tensions and rising bullion prices. These flows reflected a broader flight-to-safety, with gold seen as a hedge against market volatility and currency uncertainty.
Central banks also played a significant role, increasing their purchases and bolstering official reserves. Many national institutions continued to diversify away from fiat currencies, adding gold to improve portfolio resilience and long-term stability.
Jewelry demand presented a mixed picture. While the overall volume of jewelry purchased fell in some regions, the total value spent on jewelry increased, driven by higher average prices and a shift toward higher-quality or branded pieces in certain markets. Seasonal and regional factors influenced these patterns, with demand remaining strong in countries where gold jewelry holds cultural importance.
Industrial and technological use of gold faced headwinds in parts of the sector due to tariffs and supply-chain pressures. Nonetheless, demand from cutting-edge technology segments, particularly applications tied to artificial intelligence and advanced electronics, showed encouraging growth. These uses often require the unique conductive and corrosion-resistant properties of gold, supporting steady long-term demand from tech innovation.
Overall, the latest data emphasize gold’s enduring role as a safe-haven asset and strategic reserve. The combination of investor flows, central bank buying, and selective strength in jewelry and technology markets helped lift both volume and value in Q2 2025. Market watchers cite geopolitical uncertainty, inflation concerns, and continued technological adoption as likely factors sustaining demand in the months ahead.