Global Gold Demand Rises 3% Amid Geopolitical Uncertainty, Iran Sees 20% Surge During Israel Conflict

Global gold demand rose 3% year-on-year to 1,249 tonnes in the second quarter of 2025, driven by investment inflows amid geopolitical uncertainty, according to the World Gold Council. ETF investments surged by 170 tonnes, with Asian markets, particularly China and India, showing strong bar and coin purchases, while central banks added 166 tonnes to reserves, led by countries like Poland, Turkey, and Azerbaijan. Despite a 14% decline in jewelry demand globally, its market value increased to $36 billion as consumers stretched budgets to invest in gold amid economic uncertainty. Iran experienced a notable 20% increase in gold purchases during its 12-day conflict with Israel, with gold coins and bars demand reaching a six-year high, and a 12% rise in jewelry demand as a proxy investment. Globally, demand for gold coins and bars fell 6% from the previous quarter, but sustained geopolitical tensions and tariff uncertainties kept gold attractive as a safe-haven asset. Overall, gold outperformed many asset classes with a 26% price appreciation in the first half of 2025.