#gold Q1 2025# ETF gold inflows# central bank gold buying# India jewellery demand# gold price surge
IBNS-CMEDIA: Global gold demand soared to a first-quarter record in 2025, fuelled by a sharp rebound in ETF inflows and continued buying by central banks, even as total demand eased slightly from last year, according to Motilal Oswal Private Wealth.
The rally came amid rising geopolitical tensions, trade disputes, and a weakening US dollar, sending gold prices to historic highs, The Economic Times reported, citing a press release by Motillal Oswal.
While total supply rose modestly, the overall market value surged as elevated prices drove a shift in investor behaviour.
Investment demand jumped 170% year-on-year to 552 tonnes—just shy of the levels seen during Q1 2022 after the Russia-Ukraine war—thanks to strong inflows into gold-backed ETFs in Europe, Asia, and India.
Global ETF holdings swelled by 226 tonnes, the highest quarterly addition in three years, lifting total holdings to 3,445 tonnes.
Central banks remained aggressive buyers, adding 244 tonnes to their reserves in Q1 2025.
Much of this came from emerging economies, signalling sustained confidence in gold as a long-term reserve asset.
However, jewellery demand took a sharp hit as high prices weighed on affordability. India, a key market, saw a 25% decline in jewellery volumes—the lowest since Q3 2020.
Still, in value terms, demand in India rose 3% year-on-year, underscoring the impact of elevated prices.
Total global supply edged up 1% to 1,206 tonnes, marking the strongest Q1 supply since 2016.
But it was the price surge that drove the most dramatic shift: overall market value climbed 40% year-on-year, as gold’s safe-haven appeal intensified in the face of global economic uncertainty.
