The World Gold Council said in its first-quarter gold demand report that Vietnam’s jewelry consumption value reached a new high, while demand in many other Southeast Asian markets remained weak.
Rising gold prices had already encouraged some investors to switch to jewelry, which contains less gold, or to investment-style jewelry products.
The shortage of gold bars also made Vietnam the sharpest decliner in bullion demand in the region, with consumption falling 24% to 9 tons.
Globally, jewelry demand in the first quarter fell 23% year-on-year to 300 tons. The drop was seen across most major markets, including China (down 32%), India (down 19%), and the Middle East (down 23%).
WGC data showed total global gold demand in the first quarter was 1,231 metric tons, up 2% from a year earlier. While sales in terms of volumes only rose modestly, value surged to a record $193 billion, a 74% year-on-year increase, as gold prices remained elevated.
 |
|
Plain gold rings on sale at gold trader SJC’s headquarters in Ho Chi Minh City, March 2025. Photo by Quynh Tran |
Drawn by the price rally and gold’s appeal as a safe-haven asset, individual investors accumulated 474 metric tons in the first quarter, up 42% by volume year-on-year, according to the WGC.
In China alone, individual investors bought a record 207 metric tons of gold bars. India, South Korea, Japan, the U.S., and Europe also saw rising demand for the precious metal.
Central banks continued to support overall demand, with net purchases of 244 metric tons, higher than average, even though some stepped up sales, including Turkey and Russia.
Shaokai Fan, Global Head of Central Banks World Gold Council, said geopolitical tensions would continue to drive gold demand in 2026 and beyond. “High prices may continue to sustain gold jewelry demand.”
Louise Street, senior markets analyst at the WGC, agreed that geopolitical risks would keep gold investment demand high. A prolonged high interest rate environment could however create headwinds, especially in western markets.
On the supply side, mining output is expected to only grow modestly, though energy shortage risks could limit that growth.
