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Gold demand surged globally in Q1 2025, driven by a revival in ETF inflows, continued central bank buying, and strong retail investment in Southeast Asia—especially Thailand.
According to the World Gold Council’s Q1 2025 Gold Demand Trends report, Thailand recorded its strongest first-quarter performance since 2019. The country’s bar and coin investment demand rose 25% year-on-year to 7.4 tonnes, boosting total consumer demand to 9.1 tonnes, a 17% annual increase. This marked the highest quarterly consumer growth in Southeast Asia.
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Global Trends: Investment Demand Drives Growth
In a quarter where gold prices surpassed $3,000/oz, total global gold demand—including OTC transactions—reached 1,206 tonnes, a 1% increase year-on-year.
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- Investment demand more than doubled to 552 tonnes—a 170% year-on-year surge and the highest since Q1 2022.
- Gold ETFs saw global net inflows of 226 tonnes, as investors sought safe-haven assets amid ongoing market uncertainty and volatile tariff policies.
- Bar and coin demand rose 3% year-on-year to 325 tonnes, bolstered by strong interest in China, which saw its second-highest quarterly demand on record.
- Western demand lagged, with U.S. bar and coin purchases down 22%, while Europe posted a 12% recovery from a weak base in Q1 2024.
Central Bank and Jewellery Trends
- Central banks added 244 tonnes to reserves, continuing a 16-year streak of net-buying. Though down 21% year-on-year, demand was in line with the three-year quarterly average.
- Jewellery demand declined globally due to high gold prices. Thailand’s jewellery consumption fell 8% to 1.7 tonnes, while global jewellery volumes hit their lowest since the COVID-19 pandemic.
- Despite volume declines, global consumer spending on jewellery rose 9% year-on-year to $35 billion, with China as the major exception to growth.
Stable Supply and Tech Demand
- Total gold supply was flat at 1,206 tonnes, as record-high mine production was offset by slightly lower recycling volumes.
- Technology demand held steady at 80 tonnes, in line with Q1 2024.
