Total Q1 gold demand (inclusive of OTC investment) was 1% higher y/y at 1,206t – the highest for a first quarter since 2016.
Central banks bought 244t of gold in Q1, a slowdown from the previous quarter but comfortably within the quarterly range of the last three years.
A sharp revival in gold ETF inflows fuelled a more-than-doubling of total investment demand to 552t (+170% y/y); its highest since Q1’22.
Bar and coin demand remained elevated at 325t – 15% above the five-year quarterly average. China drove much of this increase, posting its second-highest quarter of retail investment.
Technology demand of 80t was unchanged y/y. Ongoing AI adoption drove continued growth in the electronics sector, but uncertainty over tariffs makes for a challenging environment for the remainder of the year.
Gold jewellery demand fell sharply in the record price environment: volumes reached their lowest since demand was halted by COVID in 2020. In value terms, consumer spending on gold jewellery grew 9% y/y to US$35bn.
Highlights
The LBMA (PM) gold price has continued to set multiple new record highs during 2025. The quarterly average price reached US$2,860/oz in Q1, up 38% y/y.
Key factors fuelled gold’s price rise: the spectre of US tariffs, geopolitical uncertainty, stock market volatility and US dollar weakness.
Total Gold demand in value terms almost matched the Q4 record of US$111bn. The slight uptick in demand volumes translated to a 40% y/y rise in value, due to the surging price.
Total Q1 gold supply grew 1% y/y to 1,206t. Mine production inched up to a Q1 record of 856t. In contrast, recycling declined 1% y/y as consumers held onto their gold hoping for higher prices.
OTC investment and stock changes were negative in Q1. Institutional and high net worth investors continued to show strong interest in gold, but this was offset by other factors, including changes in stock levels and a likely shift in investor focus from OTC to ETFs.
Table 1: Quarterly gold supply and demand by sector, tonnes
| Q1'24 | Q2'24 | Q3'24 | Q4'24 | Q1'25 | Quarter-on-quarter % change | Year-on-year % | |
| Supply | |||||||
| Mine production | 853.4 | 901.0 | 961.5 | 957.1 | 855.7 | -11 | 0 |
| Net producer hedging | -8.8 | -19.8 | -6.8 | -19.3 | 5.0 | - | - |
| Recycled gold | 349.6 | 334.8 | 326.3 | 358.7 | 345.3 | -4 | -1 |
| Total Supply | 1,194.2 | 1,216.0 | 1,280.9 | 1,296.6 | 1,206.0 | -7 | 1 |
| Demand | |||||||
| Jewellery fabrication | 538.5 | 411.0 | 542.3 | 520.4 | 434.0 | -17 | -19 |
| Jewellery consumption | 480.1 | 391.8 | 459.0 | 547.5 | 380.3 | -31 | -21 |
| Jewellery inventory | 58.4 | 19.1 | 83.3 | -27.1 | 53.6 | - | -8 |
| Technology | 80.2 | 80.2 | 82.9 | 82.9 | 80.5 | -3 | 0 |
| Electronics | 66.0 | 66.8 | 69.1 | 68.8 | 67.0 | -3 | 2 |
| Other Industrial | 11.9 | 11.1 | 11.6 | 11.9 | 11.3 | -5 | -5 |
| Dentistry | 2.3 | 2.3 | 2.2 | 2.2 | 2.1 | -2 | -6 |
| Investment | 204.4 | 267.5 | 365.2 | 344.7 | 551.9 | 60 | 170 |
| Total bar and coin | 317.3 | 274.6 | 270.5 | 326.0 | 325.4 | 0 | 3 |
| Bars | 226.8 | 199.7 | 198.7 | 236.6 | 257.6 | 9 | 14 |
| Official coins | 66.0 | 49.6 | 32.1 | 53.5 | 45.2 | -16 | -32 |
| Medals/Imitation coins | 24.6 | 25.4 | 39.8 | 35.8 | 22.6 | -37 | -8 |
| ETFs & similar products | -113.0 | -7.1 | 94.7 | 18.7 | 226.5 | 1,114 | - |
| Central banks & other inst. | 309.9 | 211.5 | 199.5 | 365.1 | 243.7 | -33 | -21 |
| Gold demand | 1,133.0 | 970.2 | 1,189.8 | 1,313.0 | 1,310.0 | 0 | 16 |
| OTC and other | 61.2 | 245.9 | 91.1 | -16.5 | -104.0 | - | - |
| Total Demand | 1,194.2 | 1,216.0 | 1,280.9 | 1,296.6 | 1,206.0 | -7 | 1 |
| LBMA Gold Price (US$/oz) | 2,069.8 | 2,338.2 | 2,474.3 | 2,663.4 | 2,859.6 | 7 | 38 |
Note: For an explanation of these terms, please see the Notes and definitions download: https://www.gold.org/goldhub/data/gold-demand-by-country
Source: Metals Focus, ICE Benchmark Administration, World Gold Council
