13.05.2025 09:01
It appears that the demand for gold is rapidly increasing worldwide. Economic uncertainties and a lack of confidence in investment instruments are among the factors driving this demand. In fact, this demand has reached the highest first-quarter level since 2016. The investment gold purchases, which were 344.7 tons in the previous quarter, rose to 551.9 tons in the first quarter.
Global gold demand reached its highest first-quarter level since 2016, influenced by U.S. tariffs, geopolitical uncertainties, stock market volatility, and a weak dollar. The World Gold Council published its "Gold Demand Trends" report for the first quarter of 2025. According to the report, global gold demand in the first quarter increased by 1% compared to the same period last year, reaching 1206 tons. Thus, gold demand in the first quarter saw the highest level measured since 2016. During this period, the inflows into gold exchange-traded funds played a significant role in the price increase of gold. Central banks' gold purchases in the first quarter slowed compared to the previous quarter. In the first quarter, central banks purchased a total of 243.7 tons of gold.
GOLD PURCHASES REACHED 551.9 TONS
Investment gold purchases, which were 344.7 tons in the previous quarter, increased to 551.9 tons in the first quarter. The purchase of coins and bars of gold reached 325.4 tons. Gold jewelry demand experienced a sharp decline in a record price environment. The amount of gold used for jewelry fell to the lowest level measured since the demand halt during the COVID-19 pandemic in 2020. Gold prices reached record levels in 2025. The average price of gold in the first quarter increased by 38% year-on-year, reaching $2,860. The main factors contributing to the increase in gold prices were identified as U.S. tariffs, geopolitical uncertainty, stock market volatility, and a weak dollar.