Gold ETF investment soars 170% as jewellery demand slumps amid geopolitical tensions

Global markets, particularly in Europe, Asia, and India, investment demand saw a dramatic 170% year-on-year rise, driven by a strong rebound in gold ETF inflows. Central banks maintained robust buying, adding 244 tonnes, signalling continued confidence in gold as a strategic reserve asset, especially among emerging markets.

Jewellery demand, however, declined sharply due to high prices. In India, volumes dropped 25%—the lowest quarterly level since Q3 2020—as record prices impacted affordability. DGold prices soared to record highs amid geopolitical tensions, trade wars, and a weakening US dollar, pushing overall market value. Despite the volume drop, the value of jewellery demand in India was 3% higher year-on-year.