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Gold Demand Trends: Q1 2025

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.

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