With a solid start to 2025, long-term elements remain strong for gold, according to Sachin Jain, regional chief executive officer at India for World Gold Council.
In the first quarter of 2025, gold demand hit its highest level since 2016, the council shared in a report on Wednesday on the occasion of Akshaya Tritiya. Global gold demand in Q1 2025 rose 1% year-on-year to 1,206 tonnes.
Speaking to NDTV Profit, Jain suggested that the gold outlook remains positive given current macroeconomic and geopolitical conditions.
"I think the pillars of strength of gold are very much in favour of what gold is... it's going to be very strong, foresight even for the coming time," Jain said.
"My only bit would be that you need to look at gold from a long-term perspective, a long-term view. And from that perspective, it's certainly going to be performing very well," he added.
Gold has had an impressive start to 2025 - the Q1 figures are in, and amid record prices, it was the strongest first quarter for total demand since 2016. Get the data in #GoldDemandTrends: https://t.co/VHhYznnbeq pic.twitter.com/l5RbReRAeQ
April 30, 2025In the year-to-date terms, gold has given nearly 25% returns amid rising geopolitical tensions and economic uncertainty. Total global gold demand rose 1% year-on-year to 1,206 tonnes in Q1 2025, the World Gold Council report highlighted.
"Total gold demand in value terms nearly matched the Q4 record of $111 billion. The slight increase in demand volumes led to a 40% year-on-year rise in value, driven by the soaring gold price," the report added.
During the quarter, jewellery demand saw a decline of 21% to 380 tonnes, according to the report. However, consumer spending on gold jewellery rose 9% year-on-year, reaching $35 billion.
On this, Jain said the trend needs to be analysed from the lens of value as well as volume.
The fact that consumers have invested more in value despite high prices shows strong confidence in gold. Every time the price of gold goes up, the consumer waits and watches, according to Jain. "Once it's consolidated, the consumers come into the market. And that's what we believe will happen this time around as well," he added.
During the quarter, despite the drop in volume, the high gold price boosted its value. The World Gold Council's report highlighted that during this period, the average gold price reached a record $2,860 per ounce, up 38% YoY. The central bank's demand fell 21% year-on-year, though central banks still bought 244 tonnes in the first quarter of 2025.
When asked if the bull run is expected to continue for gold, Jain said that in the last few days, small dips have occurred, marking small adjustments rather than a trend reversal.
"When we look at the broader picture and the pillars supporting gold, the mid to long-term outlook remains strong. Corrections may happen, but the underlying confidence in gold, especially from central banks, is solid. These are the core elements driving long-term gold growth," Jain said.
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