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Global demand for gold reached 1,206 tons in the first quarter of 2025, the highest total for a first quarter since 2016, as rising inflows into exchange-traded funds (ETFs) and persistent macroeconomic uncertainty heightened investor appetite, according to the World Gold Council (WGC).

Total demand increased by 1% year-on-year, with investment demand being the main driver. Total investment in gold more than doubled to 552 tons, a year-on-year increase of 170%, as ETFs recorded a strong rebound after a moderate 2024.

This marked the highest quarterly investment demand since the first quarter of 2022.

Demand for bars and coins also remained strong at 325 tons, 15% above the five-year average. "China drove much of this increase, recording its second-highest quarter of retail investment," said the WGC in a report.

Central banks added 244 tons to their reserves in the quarter. Though this represented a slowdown compared to the last quarter of 2024, it remained within the typical range observed over the past three years.