Thailand sees robust retail gold investment demand in Q1

The World Gold Council’s Q1 2025 Gold Demand Trends report reveals that Thailand’s total bar and coin investment demand rose 25% year-on-year in Q1 2025 to 7.4t, marking the strongest first quarter since 2019. This brings the country’s consumer demand to 9.1t, a 17% increase, representing the highest quarterly consumer growth in Southeast Asia.

Surging Gold ETFs Fuel Q1 Global Demand 

The global total quarterly gold demand (including OTC ) was 1,206t, a 1% increase year-on-year, in a record high price environment, in which gold surpassed US$3,000/oz.

The gold ETF revival fuelled a more-than doubling of total investment demand to 552t, a 170% year-on-year increase and the highest since Q1 2022. ETF inflows accelerated around the world, totalling 226t in the first quarter, as price momentum and tariff policy uncertainty drove investors to gold as a haven. 

Global bar and coin demand increased 3% y/y, remaining elevated at 325t during Q1, spurred by a surge of retail investment in China, which posted its second-highest quarter on record. Eastern investors drove much of the global demand for bar and coin, offsetting Western weakness as appetite in the US dropped 22% year-on-year, alongside a modest 12% recovery in Europe, but from a very low base in the same quarter last year.

Central Banks are now entering their 16th consecutive year of net-buying, adding 244t to global reserves in Q1 amidst ongoing global uncertainty. While this level of demand was 21% lower year-on-year, it remains robust and in line with the quarterly average for the last three years of sustained, strong buying.Unsurprisingly, jewellery demand was negatively impacted as gold hit 20 all-time price highs in Q1. Thailand’s jewellery demand declined to 1.7 tonnes due to high prices, representing a modest decrease of 8% year-on-year, while global volumes reached their lowest point since demand was stifled by the Covid pandemic in 2020. However, the jewellery market remained relatively resilient, especially in value terms, given extreme price pressures. The first quarter saw a 9% year-on-year increase in consumer gold jewellery spending to US$35bn, with almost every market except China.

Total gold supply was relatively flat year-on-year, at 1,206t in the first quarter, as record Q1 mine production was offset by slightly lower recycling. Technology demand was also stable at 80t, compared to Q1 2024. 

Mr Shaokai Fan, Head of Asia-Pacific (ex-China) & Global Head of Central Banks at ‎the World Gold Council, commented: ‎

 

Consumer investment was generally stronger y/y among the ASEAN markets covered in this report. In Thailand, positive price expectations underpinned gold investment, which led the bar and coin investment demand to an impressive 25% y/y increase, although demand here declined when compared to the previous quarter as the gold price rally encouraged profit-taking. Jewellery demand in Thailand for Q1 aligned with global trends, where demand was down in response to record gold prices, yet the Thai market still shows resilience with a moderate decline compared to some other ASEAN countries in our study.”

Louise Street, Senior Markets Analyst at the World Gold Council, commented: 
“It’s been a bumpy start to the year for global markets as trade turmoil, unpredictable US policy announcements, sustained geopolitical tensions and a return of recessionary fears have created a highly uncertain environment for investors. In this context, investment demand for gold has paved the way for the highest level of first-quarter demand since 2016.  

“Over the past 10 months, investors have returned to gold ETFS, ramping up their allocations since Q3 last year, and already in April, Asian inflows have stormed past their Q1 total. However, there is still room for growth, with global gold ETF holdings sitting 10% below their 2020 high. 

“Looking ahead, the broader economic landscape remains difficult to predict, and that uncertainty could provide upside potential for gold. As turbulent times persist, haven demand for gold from institutions, individuals and the official sector could climb higher in the months to come.” 

The Gold Demand Trends Q1 2025 report, which includes comprehensive data provided by Metals Focus, can be viewed here.

(2025/05/09-00:00)