The world demand for gold has reached the maximum since 2016. This is stated in the report of the World Gold Council for the first quarter of 2025.
The key factors of prices for prices are named US tariff policy, geopolitical instability, the volatility of stock markets and the weakening of the dollar
According to the report of the “Gold demand trends”, the world demand for gold in the first quarter grew by 1% compared to the same period last year and amounted to 1206 tons.
This is the highest rate for the first quarter since 2016.
One of the key factors in the price of gold prices has become tributaries in exchange investment funds (ETF), focused on gold.
Gold purchases by central banks in the first quarter slowed down compared to the previous quarter and amounted to 243.7 tons.
At the same time, the investment demand for gold has increased sharply: from 344.7 tons in the previous quarter to 551.9 tons in the first quarter of the current year.
purchases of gold ingots and coins reached 325.4 tons.
amid record prices, the demand for jewelry has sharply decreased. The volume of gold used in the jewelry industry has become the lowest since 2020 – the time of the Covid -19 pandemic, when the demand has practically stopped.
The average price of gold in the first quarter increased by 38% in annual terms and amounted to $ 2860 per ounce.