In its Q2 2025 Gold Demand Trends report, the World Gold Council (WGC) reports that total gold demand—including over-the-counter trades—increased by 3% year-on-year to 1,249 tonnes amid ongoing geopolitical uncertainty.
Gold exchange-traded fund (ETF) inflows were particularly strong, with 170 tonnes added in Q2 and 397 tonnes in the first half of 2025, marking the largest inflows since 2020. Physical demand also showed resilience: demand for bars and coins rose 11% to 307 tonnes, driven by a 44% surge in Chinese investment and steady buying in India.
Central banks continued to add to their reserves, purchasing 166 tonnes of gold in Q2. While that pace was slower than in some earlier quarters, it remains elevated by historical standards. Conversely, jewellery demand declined by 14%, weighed down by higher gold prices that restrained consumer purchases.
WGC analyst Louise Street highlights that gold had already appreciated by 26% in the first half of 2025. Given that strong run-up, she suggests prices may consolidate and trade within a relatively narrow range unless macroeconomic conditions worsen. In such a scenario, safe-haven demand and further central bank buying could again push prices higher.
Overall, the Q2 report paints a picture of a market supported by strong institutional flows and robust retail investment in certain regions, even as rising prices temper jewellery consumption. The balance of ETF inflows, central bank purchases and regional retail demand helped sustain total gold demand at elevated levels during the period.