Gold surged 26% in the first half of 2025 to reach record levels, yet investor appetite remained strong—particularly through exchange-traded funds (ETFs). According to the World Gold Council’s Q2 Gold Demand Trends report, total global investment demand climbed 78% year-on-year, marking the most robust half-year since 2020. ETF inflows in Australia and across the globe reversed earlier outflows seen in 2024, as investors reacted to concerns about slowing economic growth, heightened geopolitical tensions and worries over currency depreciation.
Central banks sustained sizable purchases, adding 166 tonnes of gold in the second quarter, while physical demand for bars and coins increased by 11%, driven primarily by buyers in China and India. Those retail purchases helped balance the shift away from other asset classes and reflected a search for safe-haven assets amid uncertain markets.
By contrast, demand for gold jewellery declined sharply during the period. Analysts point to a mix of factors behind the drop, including changing consumer preferences and price sensitivity as bullion reached new highs. Even so, the overall Fundamentals for gold remained supportive.
Market commentators emphasize that persistent volatility and unpredictable macroeconomic conditions are likely to continue supporting gold prices into the second half of 2025. With central banks maintaining active purchase programs and investors increasingly allocating to ETFs and physical bullion, gold’s role as a hedge against economic and geopolitical risk appears reinforced.
In summary, the first half of 2025 saw a strong resurgence in investment demand for gold—driven by ETF flows, central bank buying and retail bar and coin purchases—while jewellery consumption softened. Those trends, combined with ongoing uncertainty in global markets, suggest continued support for elevated gold prices as the year progresses.