MOSCOW, April 30. /TASS/. Global demand for gold in the Q1 of 2025 rose by 1% year-on-year, reaching 1,206 metric tons - the highest figure for this period since 2016, according to the latest report by the World Gold Council.

During the same period, central banks around the world purchased 244 metric tons of gold. While this figure is lower than in the previous quarter, it remains within the average quarterly range observed over the past three years. A sharp resurgence in inflows into gold-backed exchange-traded funds (ETFs) drove a more than twofold increase in total investment demand, which rose to 552 metric tons, or up 170% year-on-year, marking the highest level since the Q2 of 2022.

Demand for gold bars and coins reached 325 metric tons in the Q1, 15% above the five-year quarterly average. According to the Council’s data, China accounted for the majority of this growth.

Global gold mine production in the Q1 rose to a record-high 856 metric tons, while gold recycling declined by 1% year-on-year to 345.3 metric tons, as producers held back inventories in anticipation of further price increases.

According to the WGC, the average quarterly price of gold during the reporting period stood at $2,860 per ounce, reflecting a 38% year-on-year increase. Contributing factors included the potential imposition of tariffs by the United States, heightened geopolitical uncertainty, stock market volatility, and the weakening of the US dollar.

However, amid record-high prices for the precious metal, demand for gold jewelry declined, with volumes reaching their lowest point since the slump in demand triggered by the pandemic in 2020.