Vietnam's gold demand in the second quarter decreased by 20% compared to the same period last year - Photo: WGC
Global gold demand increases despite high prices
According to the World Gold Council (WGC) Q2-2025 gold demand trend report, total gold demand in Q2 (including investment in the decentralized market) reached 1,249 tons, up 3% year-on-year amid rising gold prices.
Strong investment flows into gold were the main factor driving the growth of the gold market this quarter, as the increasingly unpredictable geopolitical environment and the continued rise in gold prices contributed to maintaining demand.
Investment in gold exchange-traded funds (ETFs) remained the main driver of total demand, with inflows of 170 tonnes in the quarter, in contrast to mild outflows in the second quarter of 2024.
Asia-listed funds made a significant contribution at 70 tonnes, on par with US funds. Combined with record inflows in Q1, total demand from global gold ETFs reached 397 tonnes – the highest first-half level since 2020.
Central banks continued to buy gold, albeit at a slower pace, holding an additional 166 tonnes of gold in Q2-2025.
Despite this slowdown, central bank buying remains significantly high due to persistent economic and geopolitical uncertainty.
The WGC's annual survey of central banks2 shows that 95% of reserve managers believe that global central bank gold reserves will increase over the next 12 months.
Vietnam is an exception.
Mr. Shaokai Fan, director of Asia-Pacific (excluding China) and director of global central banks at WGC, commented: Investment in gold remains high due to demand for safe-haven assets and increasing capital flows into the market, while retail investment is expected to remain stable or decrease slightly.
According to this person, investment in gold bars and gold coins also recorded a good growth rate, mainly due to significant year-on-year increases in China and Europe. Demand for gold jewelry is likely to continue to decline due to high gold prices and slow economic growth.
Total investment in gold bars and coins also increased 11% year-on-year to 307 tonnes. Chinese investors led the way with demand reaching 115 tonnes, while Indian investors continued to increase their holdings, totaling 46 tonnes in the second quarter.
In Western markets, investment trends were markedly different: net investment in Europe more than doubled to 28 tonnes, while demand for gold bars and coins in the US halved to just 9 tonnes in the second quarter.
High gold prices combined with economic and political uncertainties have boosted investment demand for gold in the ASEAN region in the second quarter. Vietnam is an exception, the report pointed out.
The devaluation of the local currency and the rising value of the US dollar have sent domestic gold prices soaring to record levels. This has created an affordability barrier, causing gold demand in the second quarter to fall 20% year-on-year to 9 tonnes, according to the WGC.
However, looking at the long-term trend, demand remains high, and the total value of gold invested in Vietnam actually increased by 12% in USD terms compared to the same period last year, reaching 997 million USD.
Source: https://tuoitre.vn/hoi-dong-vang-the-gioi-viet-nam-la-truong-hop-ngoai-le-nhu-cau-vang-giam-20250731211800615.htm
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