Gold market trends second quarter 2025

In this article, we summarise the key trends in the gold market for the second quarter of 2025, based on the report from the World Gold Council.

Increased demand

In the second quarter of 2025, gold demand continued to rise, up 3% compared to the same quarter last year, reaching 1,249 tonnes. Compared to the increase in volume, the value rose sharply by 45% to 132 billion US dollars.

The increase in value is mainly driven by the record gold price, with investors remaining interested in gold as a safe haven during times of political and economic uncertainty. This resulted in the strongest first half-year for gold bars and coins since 2013.

Trading in ETFs

Alongside strong demand for gold bars and coins, gold ETFs (Exchange Traded Funds) also proved very popular. In Q2 2025, gold ETFs reached a volume of 170 tonnes, a 78% increase compared to the same quarter last year.

The increased demand appears to be a response to ongoing economic and political concerns. Transparency, liquidity, and low costs are key advantages of ETFs for many investors. Unlike physical gold, ETFs require no storage or insurance.

Lower demand from central banks & slightly higher supply

While investors remain enthusiastic about gold, demand from central banks has declined slightly. Although central banks still added 166 tonnes of gold to their official reserves in the second quarter, this is lower than the average in recent years, yet still healthy.

Gold supply saw modest growth of 3% in Q2 2025, partly due to slightly higher mine production and partly due to increased recycling. Notably, recycling volumes had less impact on high gold prices than expected.

Lower demand for jewellery

The high gold price has led to lower demand for gold jewellery in many markets. This is understandable, a unlike investment gold, the metal in jewellery mainly serves an aesthetic function.

It is noteworthy that gold prices and demand continue to rise despite lower demand from the jewellery market.

Outlook for 2025

The World Gold Council expects demand for gold ETFs and physical investment gold to remain high in 2025, though possibly at a slower pace than in Q2 2025. Central bank purchases have slowed slightly but remain at a healthy level, and the long-term trend of expanding reserves remains intact.

While the high gold price puts pressure on jewellery demand, it also likely means less jewellery will be recycled.

Buying gold at The Silver Mountain

Interested in investment gold? The Silver Mountain offers a wide range of gold coins and gold bars available directly from stock. If you prefer not to deal with the worries of insuring or transporting gold, we can also store it securely for you—while you remain the legal owner of the gold, unlike with an ETF. We do this in cooperation with Edelmetaal Beheer Nederland.

Curious about the full details of the gold trends in the second quarter of 2025? You can download and read the World Gold Council report here.