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Informist, Wednesday, Apr. 30, 2025

 

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--WGC: Global gold demand in Jan-Mar at 1,206 tn, up 1% on year
--CONTEXT: WGC releases Gold Demand Trends report for Jan-Mar
--WGC: Gold prices in Jan-Mar averaged $2,859.6/ounce, up 38% on year
--WGC: Global central banks' gold demand in Jan-Mar at 243.7 tn, dn 21% YoY
--WGC: Jan-Mar global gold ETF inflow at 226.5 tn vs 113.0 tn outflow yr ago
--WGC: Global gold demand for jewellery in Jan-Mar at 380.3 tn, down 21% YoY
--WGC: Global demand for gold bars, coins in Jan-Mar at 325.4 tn, up 3%
--WGC: Global investment demand for gold in Jan-Mar 551.9 tn, up 170% on year
--WGC: Global gold supply in Jan-Mar at 1,206.0 tn vs 1,194.2 tn year ago

MUMBAI – Global demand for gold rose 1% on year to 1,206 tonnes in the March quarter, primarily due to a massive rise in inflows into exchange-traded funds, the World Gold Council said in its Gold Demand Trends report on Wednesday. Global demand for gold during the quarter was the highest since 2016. 

 

A sharp revival in inflows into gold ETFs fuelled more than doubling of the total investment demand to 552 tonnes, up 170% on year and the highest since the March quarter of 2022. Inflows into gold ETFs were 226.5 tonnes in Jan-Mar, compared to outflows of 113 tonnes in the year-ago quarter. Demand for bars and coins rose 3% on year to 325.4 tonnes in Jan-Mar. 

 

"Over the past 10 months, investors have returned to gold ETFs, ramping up their allocations since Q3 (Jul-Sept) last year, and already in April, Asian inflows have stormed past their Q1 (Jan-Mar) total," said Louise Street, senior markets analyst at WGC. "However, there is still room for growth, with global gold ETF holdings sitting 10?low their 2020 high."

 

The slight uptick in demand volumes translated to a 40% year-on-year rise in value due to surging prices, the council said. Gold prices averaged $2,860 an ounce in the March quarter, up 38% on year. Prices have continued to hit multiple record highs in 2025 due to trade tensions between the US and China, a weaker dollar, and geopolitical uncertainity.  

 

Over-the-counter investment and stock changes were negative during the quarter because of a shift in investor focus from over-the-counter investments to ETFs, the council said. However, excluding demand from the over-the-counter market, global gold demand rose 16% on year to 1,310 tonnes in Jan-Mar from 1,133 tonnes in the year-ago period. 

 

The average price of gold in the London bullion market in the March quarter continued to set multiple new record highs in 2025. During Jan-Mar, the average price of gold was at a record high of $2,859.60 per ounce, rising 38% from the corresponding period last year.

 

Demand from central banks in Jan-Mar fell 21% on year to 243.7 tonnes, but was 24% higher than the five-year quarterly average and 9?low the average seen over the last three years, the council said. The diversification of central bank reserves continues with a reduction in US assets, albeit with a slight uptick in February. "We don't see an end to this narrative unless there is a material shift in geopolitical tensions," the council said.

 

Globally, gold demand for jewellery fell 21% to 380.3 tonnes in Jan-Mar. "Gold jewellery demand fell sharply in the record price environment," it said. Volumes reached their lowest since the time demand was halted by the COVID-19 pandemic in 2020.

 

However, the jewellery market remained relatively resilient, especially in value terms, given extreme price pressures. The March quarter saw a 9% year-on-year increase in consumer spending at $35 billion, with every market except China seeing an increase in the value of gold jewellery demand, the council said.

 

"Looking ahead, the broader economic landscape remains difficult to predict, and that uncertainty could provide upside potential for gold," Street said. "As turbulent times persist, safe haven demand for gold from institutions, individuals and the official sector could climb higher in the months to come."

 

Meanwhile, global supply of gold was up 1% on year at 1,206.0 tn in Jan-Mar. Production from mines was the same as in the corresponding period last year at 855.7 tonnes. However, supply of recycled gold was down 1% on year at 345.3 tonnes during the quarter, as consumers held on to their gold in the hope of higher prices.  End

 

US$1 = 85.26 rupees

 

Reported by J. Navya Sruthi

Edited by Avishek Dutta

 

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