World Gold Council Highlights

Global gold demand just smashed through the ceiling. The World Gold Council’s fresh Q2 2025 report shows total offtake climbing to roughly 1,249 tons, but the most impressive part is the value. At about US$132 billion, investors poured more cash into the metal than in any quarter on record. Exchange-traded funds alone absorbed nearly 170 tons as institutions hunted for shelter from trade frictions and geopolitical shocks, which should not be too surprising. Bar and coin buyers bought up more than 300 tons, which is the biggest first-half retail rush since 2013. Over-the-counter demand also showed that buyers are moving away from paper contracts to real gold.

Central banks bought about 166 tons during the quarter. That is slightly slower than last year’s frantic pace, yet still over 40 per cent stronger than the long-term average. A record 95 per cent of reserve managers say they will keep adding over the next twelve months. Meanwhile, supply growth is barely keeping up. Mine production was high, but gold recycling was surprisingly low. It seems extra gold sitting around the house has been held on to rather than cashed in, even at such high prices.

Source: Metals Focus, Refinitiv GFMS, ICE Benchmark Administration, World Gold Council

Macro forces point the same way. The Council’s outlook calls for a weaker US dollar, policy-rate cuts starting as early as September and stubbornly high stock-bond correlations. All these conditions have historically increased gold’s appeal. Add unresolved flashpoints like tariff wars and Middle East tension, and you have a market where every major buyer class is leaning bullish.

After the report was released, the stock market was hit hard by bad jobs data and tariff news. The S&P 500, pictured below, has spent two trading days suffering a heavy drop.

For investors wondering whether they have missed the move, the data suggest the opposite. We may see the buildup of a structural bull run in which hesitating could prove far more expensive than acting.