Global Gold Demand Trends - In Q2 2025, global gold demand reached 1249 tons, a 3% year-on-year increase, with a value of $132 billion, marking a 45% increase and setting a new historical high [1] - The total gold supply also grew by 3% to 1249 tons, with gold mine production hitting a historical high in Q2 [1][3] - Investment activities in gold surged due to economic and geopolitical uncertainties, with a notable 26% increase in gold prices over recent months [1][2] Investment Demand - Gold ETF investments were a key driver of demand, with inflows of 170 tons in Q2, contrasting with outflows in the same period of 2024 [2] - The total demand for gold ETFs in the first half of 2025 reached 397 tons, the highest since 2020 [2] - Investment in gold bars and coins rose by 11% to 307 tons, with Chinese demand increasing by 44% to 115 tons [2] Central Bank Purchases - Global central banks continued to purchase gold, adding 166 tons in Q2 2025, although the pace of purchases has slowed [3] - A survey indicated that 95% of central banks expect to increase their gold reserves in the next 12 months [3] Jewelry Demand - Global gold jewelry consumption fell by 14% year-on-year in Q2, nearing 2020's low levels, despite a rise in value to $36 billion [3] - In China, gold jewelry demand dropped to 69 tons, a 20% year-on-year decline, marking the weakest Q2 since 2007 [3][4] - The overall gold jewelry consumption in China for the first half of 2025 was 194 tons, a 28% decrease compared to the previous year [3] Retail Market Dynamics - The decline in jewelry demand has led to a reduction in the number of retail outlets, further constraining consumer purchasing options [4] - The trend of consolidating underperforming stores may benefit the market in the long run by shifting focus towards emotional value and design [4][5] - High-end jewelry demand remains strong, driven by emerging brands rather than established chains [5]

Core Insights - The article discusses the recent fluctuations in gold prices and their implications for investment opportunities in the gold market, highlighting a significant increase in global gold investment demand despite a decline in gold jewelry consumption [1][2][6]. Gold Investment Demand - In Q1 2025, global gold investment demand surged to 552 tons, a staggering increase of 170% year-on-year, with gold bar and coin demand reaching 325 tons, up 3% compared to the previous year and 15% higher than the five-year quarterly average [1][6]. - China's gold bar and coin demand in Q1 2025 reached 124 tons, marking a 48% increase from the previous quarter and a 12% rise year-on-year, the second-highest quarterly level since Q2 2013 [6]. Jewelry Consumption Trends - Global gold jewelry consumption fell to 380 tons in Q1 2025, a 21% decline year-on-year, while the consumption value increased by 9% to $35 billion, indicating a shift in consumer behavior towards investment rather than ornamental purchases [2][3]. - In China, gold jewelry consumption dropped by 32% to 125 tons, the weakest performance since 2020, reflecting the impact of high gold prices on consumer purchasing decisions [2][3]. Market Dynamics - The high gold prices have led consumers to adopt a more cautious approach, with many opting for lighter, more affordable gold products, indicating a trend towards market segmentation and diversification in consumer preferences [3][4]. - Despite the decline in volume, the sales value of gold jewelry remains robust, suggesting that consumers still value gold as an investment, even as they become more selective in their purchases [2][3]. Future Outlook - The report anticipates that price will continue to be a critical factor influencing gold jewelry sales in China, with potential further declines in demand expected if high prices persist alongside economic uncertainties [5]. - The ongoing geopolitical tensions and economic concerns are likely to sustain the heightened demand for gold as a safe-haven asset, reinforcing its role in investment portfolios [6][7].

Group 1: Market Overview - In 2024, global gold demand reached a record high of 4,974 tons, a 20% increase year-on-year, with total consumption value exceeding $382 billion [1][10] - The average annual gold price rose to $2,386 per ounce, marking a 23% increase from 2023, the largest increase in nearly a decade [1][10] - Gold supply increased by 1% year-on-year, with gold mine production estimated to grow by 1%, while recycling supply surged by 11% [1][10] Group 2: Demand Dynamics - Jewelry and investment demand exhibited a contrasting trend; global jewelry consumption fell to a historic low of 1,877 tons, down 11% year-on-year, but the consumption value increased by 9% to $144 billion [2][25] - Investment demand was the primary driver, with total investment volume rising to 1,180 tons, a 25% increase year-on-year [2][48] - Central bank gold purchases exceeded 1,000 tons for the third consecutive year, with a net purchase of 1,045 tons in 2024, primarily from emerging market central banks [2][12] Group 3: Regional Insights - In China, jewelry demand declined by 24% to 479 tons due to economic slowdown and high gold prices, while India showed resilience with only a 2% decline in demand [25][33] - The Middle East and Turkey saw a rebound in demand in Q4, with an 18% quarter-on-quarter increase due to price corrections [2][35] - The U.S. experienced a continuous decline in jewelry demand for 11 consecutive quarters, reaching a five-year low, while European demand also fell to the lowest level since 2020 [39][40] Group 4: Future Outlook - The demand for gold in the technology sector is expected to grow by 7% to 326 tons in 2024, driven by the demand for AI hardware and 5G devices [3][12] - Investment demand is anticipated to remain strong in 2025, supported by central bank interest rate cuts and geopolitical uncertainties [3][12] - Jewelry consumption may face pressure from high gold prices, but the wedding season in India and recovery in emerging markets could provide some support [3][20]

Group 1 - The World Gold Council's report indicates that global gold demand reached 1206 tons in Q1 2025, a 1% year-on-year increase, marking the highest level since Q1 2016 [1] - The average gold price in Q1 was $2860 per ounce, a 38% increase compared to the previous year, driven by factors such as US tariffs, geopolitical uncertainties, stock market volatility, and a weaker dollar [1] - Gold ETF inflows surged, contributing to a total investment demand of 552 tons, a 170% year-on-year increase, the highest quarterly level since Q1 2022 [1] Group 2 - Demand for gold bars and coins reached 325 tons, a 3% year-on-year increase, attributed to strong retail investment in China [1] - Jewelry demand fell to its lowest level since the pandemic began in 2020, although the monetary value of jewelry consumption increased by 9% year-on-year to $35 billion [1] - The high gold prices and seasonal demand weakness may pressure jewelry consumption in China in Q2, but the dual nature of gold as both a decorative and investment asset may provide some support [2]