Copyright © HT Digital Streams Limit all rights reserved. Joseph Hoppe, The Wall Street Journal 2 min Read 30 Apr 2025, 04:28 PM IST ETF inflow in the first quarter, a total of 226 tons. (Pexels Photo) Summary The demand for gold has been powered by trading on merchandise, US policy announcements, geopolitical tensions and concerns about the recession. The demand for gold demand increased in the first quarter of the year, fueled by a revival of the inflow of the Goldfare Traded Fund, according to a report by the industry body. The total gold demand for the first three months of 2025 rose 1% by year to 1.206 tonnes, the strongest start of a year since 2016, the World Gold Council on Wednesday said in a new report on gold demand trends. ETF inflow picked up in the first quarter, a total of 226 tons. A year earlier, ETFs outflow of 113.0 tonnes and the inflow of just 18.7 tonnes in the fourth quarter of 2025. This inflow has accelerated all over the world, which has driven a more than doubling of total investment demand to 552 metric tons. In April, the influx of the Asian ETF exceeded their total in the first quarter. “This reflects the increasing macroeconomic and geopolitical uncertainty, including the tensions of the US China and sustained gold price strength, which has strengthened the role of Gold as a safe haven asset. Chinese investors are particularly gaining as a liquid and flexible alternative in the midst of continuing weakness,” WGC, said. However, there is still room for further growth, but global Gold ETF interests that are 10% below their 2020 high. The healthy demand for gold has been powered by trade on merchandise, unpredictable US policy announcements, persistent geopolitical tensions and increasing concerns about the recession. The resulting demand for safe Haven has contributed to the future prices of Gold to a record high of all time on April 22 of $ 3,509.90 per Troy ounce. New York Mercantile Exchange Gold -futures so far rises almost 26%. Looking forward, the investment demand should continue to get pace, given the short-term stagflation risks, recession risks in medium term, increased equity correlations, US deficiency growth and continued geopolitical concerns, the WGC said. Elsewhere, the demand for the central bank in the first quarter delayed to 244 tonnes of purchases. Although it is 21% lower at the year, it remains strong and in line with the quarterly average of the past three years, the report states. Central banks are strategic, long -term buyers and typically less sensitive to short -term price movements or events. If they obstruct any structural changes, it must still be a consistent, healthy source of demand until 2025, even if the rate of purchases is vary, Street said. On the other hand, the demand for the golden demand for jewelry dropped sharply this year, powered by higher prices. Weakness was seen in every major region, with the global demand falling by 21% on the year and sharp declines in China and India. The volumes have reached their lowest levels, as the demand by the Covid-19 pandemic was suffocated in 2020. That said, in value conditions, consumer spending on gold jewelry on the year increased by 9% to $ 35 billion, the WGC said. Value growth was seen in each market beam, suggesting that consumers were willing to expand their budgets. The demand for technology, meanwhile, was unchanged at 80 tonnes, as the growth in artificial intelligence-related demand was counteracted by high prices and declines in the wireless sector, industrial and decorative applications and dental demand. Write to Joseph HOPPE on joseph.hoppe@wsj.com, catch all the commodity news and updates on live currency. Download the Mint News app to get daily market updates and live business news. More Topics #Gold ETFs #Gold Prices Mint Special
Golden question shone on renewed ETF inflow in early 2025, Reports says says
