Gold records a strong Q1, 2025

Gold posted a strong Q1 2025, with total demand reaching 1,206 tonnes up 1% year-over-year and marking the highest Q1 level since 2016. This strength came despite surging prices, with gold touching a record high of $3,500/oz, reflecting escalating stagflation risks, geopolitical instability, and de-dollarization themes. 

Investment demand led the quarter’s surge, more than doubling to 552t (+170% y/y), its strongest showing since Q1 2022. Gold ETF inflows rebounded sharply as investors sought refuge from volatility in equities and bonds, while bar and coin demand remained solid at 325t—15% above the five-year quarterly average—driven by robust Chinese retail buying. 

Central banks remained net buyers, adding 244t. Though below Q4 levels, purchases stayed within the strong quarterly range seen over the last three years, reinforcing the narrative of waning confidence in US assets amid global trade and policy tensions. 

Jewelry demand declined significantly under record price pressures, with volume falling to its lowest since the 2020 COVID-related collapse. However, in value terms, jewelry spending still rose 9% y/y to $35 billion, indicating persistent consumer interest in gold as a store of value. 

Technology demand held steady at 80t y/y, supported by AI-led electronics growth, though outlooks remain cautious due to tariff-related uncertainty. 

Looking ahead, investment demand is expected to stay elevated, supported by persistent macro headwinds and rising deficits. While jewelry and recycling may remain subdued due to price sensitivity and low market stocks, central bank and bar/coin buying are likely to stay resilient, sustaining overall demand momentum.