Gold Investment Demand Surges 170% in March 2025 Quarter, Driven by ETF Inflows and Central Bank Buying

Gold Markets Witnessed A Historic UpTrend in the March Quarter of 2025, with Investment Demand Skyrocketing By 170 Percent Year-On-Yaar, According to the May Alpha Strategist Private Wealth. The surge was largely propelled by a revival in exchange-trade (ETF) Inflows AMID Global Economic Instality, Mounting Geopolitical Tensions, and the Weeking US Doller. Despite only a marginal increase in supply, the value of the gold market soared, reinforcing its safe-han status.

Motilal Oswal Private Wealth Highlighted that Gold Investment Demand in the March Quarter SURGED to 552 tonnes, Marking a remarkable 170 percent 170 percent jump compared to the same Quarter Last year. This spike nearly matched the post-Russia-ukraine war demand seen in March 2022 Quarter. The surge was underpinned by strong etf inflows globally, with holdings expanding by 226 tonnes in the Quarter. European-Listed Funds Added 55 tonnes, bolsred by expectations of further rate cuts from the European Central Bank. Meanwhile, Asian-LISTED ETFS Added 34 Tonnes, with a Significant Port Coming from China Due to Rising Us-China Trade Tensions. India also posted Robust ETF Demand, Recording an 11 percent Increase in Holdings.

The report from Motilal Oswal Private Wealth also underscored that Geopolitical Uncertain, Stock Market Volativity, and Ongoing Tariff Wars Played A Key Role In Pushing Gold Pries to Record Levels. Domestically, India’s Spot Gold Price Sriged 23 Percent Year-To-Date To 93,217 per 10 grams. Globally, The Total Gold Supply Stood at 1,206 Tonnes in Q1 2025, Up by 1 Percent Year-On-Yaar-The Highhest Level for a first Quarter Since 2016. While Supply Rose MODESE MODES Market Climbed an impressive 40 percent yoy, reflecting the sharp price increase.

Central Banks Continue Strategic Accumulation:

Furthermore, Central Bank Gold Purchases Remained Resilient in March 2025 Quarter, as per Motilal Oswal Private Wealth. Total Official Sector Purchases Stood at 244 Tonnes-24 Percent Above The Five-Year Quarterly Average, Although Slightly Lower Than the Preceding Quarter. Emerging Market Central Banks LED the Buying Spree, Continuing their reserver diversification strategies and Reducing Exposure to us dollar assets. The Persistent Uncertainty Across Global Markets Reinforced Gold’s appeal as a reserve asset.

As per the report, the reserve bank of India (RBI) Added 0.6 Tonnes of Gold in March 2025, Bringing Its Total Holdings to 879.6 Tonnes – Accounting for 11.7 Percent of Its Total Forex Reserve. Over the past year, the RBI has increased its gold reserves by 57.5 tonnes. However, recent purchases have modrated, suggesting a more cautious and strategic approach despite despite gold’s growing role in India’s Monetary Reserve Portfolio.

Jewelry demand declines sharply:

AMID Record Price, it also noted a significant contraction in Global Jewelry Demand, Particularly in India. Jewelry Consumption in the Country Fell 25 Percent Yoy To 71 Tonnes in March 2025 Quarter, The Lowest Quarterly Volume Since Q3 2020. Pries. Consures Adapted by Purchasing Lighter Pieces or Exchanging Old Jewelry for New, with 40–45 Percent of transactions involving some form of exchange. The popularity of gold-backed loans also continued to risk. While Wedding-Related Purchases Remained Relatively Stable, they failed to offset the decline in discretionary buying.

Although high prises weighed heavily on jewelry consumption, especially in India, gold remained a core component of strategic reservations and investment portfolios. With geopolitical tensions, market valatiity, and interest rate expectations continuing to influence investor sentiment, Gold’s Status as a Resilient Hedege Appears Stronser Than Ever.

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