Global Gold Market at a Crossroads as Investor Demand Surges
Gold Demand in 2025 Surges from Investors While Central Banks and Jewelry Sector Pull Back
The global gold market is undergoing a major transformation. In the first half of 2025, global demand reached 2,400 tonnes, according to the latest report released by the World Gold Council (WGC) on July 31, 2025.
While gold continues to attract attention, the drivers of demand are shifting sharply—investor appetite is growing, while central banks and the jewelry sector are losing momentum.
Historically one of the main sources of gold demand, central banks are now showing signs of hesitation.
The WGC has revised downward its projections for central bank purchases, after these institutions exceeded the 1,000-tonne mark annually between 2022 and 2024.
The reversal appears to be driven by fiscal tightening and record-high gold prices, which have tempered enthusiasm.
The jewelry industry, another traditional pillar of the gold market, is also experiencing a steep drop in demand.
The WGC now forecasts a decline of 248 tonnes for 2025—up from an earlier projection of 200 tonnes. This drop is largely attributed to weakened consumer purchasing power and unfavorable pricing, which led to year-on-year contractions of 19% in Q1 and 14% in Q2.
In contrast, investment in gold is booming. Purchases by both institutional and retail investors—including ETFs, bars, and coins—made up over 1,028 tonnes, nearly half of global demand in the first half of 2025.
Encouraged by economic uncertainty and geopolitical risk, investors are returning to gold as a safe-haven asset.
The WGC has revised its annual investment forecast upward, from 412 tonnes to 462 tonnes, reflecting continued strong interest from financial markets.
Amid these macroeconomic shifts, the technology sector has emerged as a surprise source of growth. Fueled by the rapid rise of artificial intelligence (AI) and its demand for high-performance computing hardware, gold consumption in tech grew 30% year-over-year in the first half.
Though still a relatively small portion of the total market, this rebound underscores gold’s expanding role beyond traditional use cases.
The global gold market now finds itself at a strategic inflection point. The declining role of central banks, the softening of jewelry demand, and the rising dominance of investment-driven purchases are reshaping the balance of power.
With prices hovering near historic highs and economic pressures mounting, the question remains: Is this the dawn of a new gold super-cycle—or the prelude to increased volatility?
