Q2 Gold Demand Tops 1,200 Tonnes

Gold’s momentum refused to cool in the second quarter of 2025, with total demand—over-the-counter trades included—hitting 1,249 tonnes, up 3 percent year-on-year. In dollar terms the jump was far more dramatic: US$132 billion changed hands, a 45 percent leap to an all-time quarterly record. The London Bullion Market Association (LBMA) afternoon fix set a fresh high in June, while spot prices on Thursday briefly kissed US$3,309 an ounce. That resilience is coming despite (or because of) policymakers insisting inflation is yesterday’s problem.

Institutional money led the charge. Exchange-traded funds (ETFs) that hold vaulted metal absorbed 170.5 tonnes, marking a second straight quarter of heavy inflows. Retail investors were hardly timid: bar-and-coin purchases hit 306.8 tonnes, giving 2025 the strongest first-half retail showing since the 2013 taper-tantrum era. Pile the categories together and investment demand soared to 477.2 tonnes—78 percent higher than last year. Central banks, still hungry for real assets, quietly scooped up another 166 tonnes. Their buying pace slowed from Q1 but remains historically elevated, telegraphing a lingering distrust of paper promises.

Supply, meanwhile, is expanding—but not fast enough to tame the bulls. Global mine output reached 908.6 tonnes in Q2, a quarterly record that the World Gold Council expects will be exceeded again before New Year’s Eve as fatter margins coax producers to dig deeper. Recycling ticked up a modest 4 percent to 347.2 tonnes, muted considering record prices. Many Indian households opted to swap heirloom jewellery for new pieces or pledge it as collateral rather than sell outright, keeping secondary flows subdued. With total supply only 3 percent higher, any hiccup on the mining side could tighten the market quickly.…