Demand for gold in the world is not decreasing

The price of 3,900 to 4,000 euros for an ounce is realistic for the upcoming period. Key drivers of growth are intensive purchases by central banks, escalating tensions in the Middle East and the fall of trust in the US dollar

The price of gold reaches historic maxima, central banks continue to buy. According to the latest data from the World Gold Council, the global demand for gold in the first quarter of 2025 reached 1,206 tonnes, an increase of one percent compared to the same period last year. During that period, the price of gold increased by as much as 38 percent, and 2024 proved to be the sixth most successful year compared to the rise in the price of gold in the 21st century. This sudden jump in prices is a result of significant changes at the global level, both in investor behavior and central bank strategies.
When we talk about individual investors – who often buy gold rods and coins – we see that demand for investment gold has increased by as much as 170 percent in the last year. The biggest contribution to this growth comes from Europe and Asia. Since Europeans have been more focused on selling gold over the past year due to political and economic uncertainties, especially related to the US trade war, we are now witnessing a change in investment behavior.
The data show that the demand for larger products than gold is higher than for smaller ones. The main reason for this is the lower margins of the larger products – due to the fixed production costs, they occupy a lower percentage of the total price of the larger gold units (more than 20 grams) compared to those of one gram.
In general, the global trend is clear to products with a higher degree of purity and lower profit margins. The advantage of such products is faster and greater profitability in resale, as their purchasing price is significantly closer to the market price, precisely because of the lower additional costs.
When it comes to central banks, they continue to buy gold around the world. In the first three months of 2025, central banks bought a net 243.7 tonnes of gold. Although this is a reduction of 21 percent compared to the first quarter of 2024, if this level of purchase is held, 2025 could become a record year for the accumulation of gold by central banks.
Other significant buyers are China (12.8 tonnes), Kazakhstan (6.5 tonnes), Czech Republic (5 tonnes), Turkey (4.1 tonnes) and India (3.4 tonnes).
George Hristov, director of Tawex Gold and Silver, believes that the gold market has not yet reached its peak.
– According to our estimates, it will continue to grow, as it grows around the world, especially because of the current political and geopolitical situation. The price of gold from 3,900-4,000 euros for an ounce is realistic for the period ahead, and according to the experience so far, we have seen that as soon as the stock market is starting to grow, citizens are starting to buy more-says Hristov.
The price of investment gold on the world stock markets reached a record $ 2,430 an ounce in May 2025, an increase of almost 20 percent compared to the beginning of the year and even 38 percent compared to the same period in 2024.
The key drivers of this growth are the intensive purchase by central banks (especially China and India), escalating tensions in the Middle East and the fall of confidence in the US dollar due to prolonged policy of low real interest rates. RS