Worldwide appetite for gold demonstrates no signs of abating as investors and central banks persistently accumulate the safe haven commodity.
The precious metal surged during the opening six months of the year, achieving a 26 per cent gain versus the dollar and surpassing nearly all other principal asset categories, according to the latest analysis from the World Gold Council, as reported by .
The analysis credited rising demand for the commodity to continuing market turbulence, including "trade tensions, unpredictable US policy shifts and frequent geopolitical flashpoints."
Louise Street, senior markets analyst at the World Gold Council, said: "The robust investment activity we have seen in the first half of 2025 underscores gold's role as a hedge against economic and geopolitical risks.
"First half total investment was above 1,000t and the last time we saw a first half of that magnitude of investment was the first half of 2020. So it's quite a striking total for the first half of the year."
Central banks maintained their accumulation of reserves in the metal, though at a more measured rate, acquiring 166t.
The council's yearly central bank survey revealed 95 per cent of reserve managers anticipate worldwide central bank gold holdings will expand over the coming 12 months.
Ongoing appetite for bars, coins and ETFs
Overall bar and coin purchases climbed 11 per cent year on year, delivering the most robust opening half since 2013, with the Chinese marketplace particularly demonstrating elevated demand. Europe also registered robust expansion as gold investment doubled compared to the previous year.
Investor enthusiasm continues to be driven by optimistic price forecasts and macroeconomic uncertainties, particularly in eastern Europe.
There was also sustained demand for gold-backed exchange-traded funds (ETFs), with global holdings rising by 397t during the first half of the year. The collective funds delivered their most impressive semi-annual performance since the opening half of 2020, with Asian-listed funds playing a significant role alongside the US.
Nevertheless, Street recognised the potential that "gold could trade within a relatively narrow range in the latter half of 2025" after its remarkable start to the year.
Street added: "On the other hand, the macroeconomic environment remains highly unpredictable, which may underpin further gains for gold. Any material deterioration in global economic or geopolitical conditions could further amplify gold's safe-haven appeal, potentially pushing prices higher still."
Rising º£½ÇÊÓƵ prices
Switzerland and the º£½ÇÊÓƵ represented over 75 per cent of demand for European-listed funds in the second quarter, with the º£½ÇÊÓƵ registering a 17 per cent rise in demand year on year.
This was mirrored by analyst predictions, as the London Bullion Market Association lifted their forecasts for the average price of gold to 15.5 per cent over the remainder of the year. Gold dealer Solomon Global attributed the surge in º£½ÇÊÓƵ interest to the asset's tax-free status, with investors seeking to capitalise on its "unique tax advantages."
Gold remains exempt from VAT whilst gold bullion coins minted by the Royal Mint escape capital gains tax in the º£½ÇÊÓƵ.
Paul Williams, managing director of Solomon Global, explained: "The º£½ÇÊÓƵ tax burden is set to hit a new high as a proportion of GDP, so investors aren't just buying gold to diversify portfolios or for gold's historical appeal or ability to preserve wealth."
"This trend reflects a growing awareness of the unique tax advantages that the precious metal offers.
"Gold is standing out to investors as a smart, tax-efficient alternative in the face of economic uncertainty and mounting tax pressures."
