Archive · 17 Jun 2025
Gold Retail Demand Slows as Prices Rise, Central Bank Buys Continue
Gold prices are very high, which is making it harder for people to buy it from stores.
Many are waiting to buy or trading in old gold to save money.
However, central banks around the world are still buying gold because they see it as a safe investment, especially during times of trouble in the world.
Stores are trying to help by offering new, cheaper jewellery.
Soaring gold prices impact retail demand, especially for heavy jewellery.
Consumers are postponing purchases or exchanging old gold due to high prices.
Retailers are adapting by launching new jewellery categories for budget-conscious consumers.
Global demand for gold remains strong, especially from central banks.
43% of central banks plan to add gold to their reserves in the next 12 months.
- Who
- Retail consumers and central banks.
- What
- Retail gold demand slows due to high prices while central bank buying remains strong.
- When
- The next 12 months.
- Where
- Global markets, specifically India's retail market.
- Why
- High gold prices impact retail sales; central banks see gold as a safe investment.
Retail vs Institutional
Central Banks
Response to Price Changes
Retail vs Institutional
Consumers are postponing purchases or trading old gold.
Central Banks
Central banks are continuing with long-term buying programs.
- Banks Adding Gold
- 43%
- Banks Expecting Purchases
- 95%
- Indian Gold Price
- ₹1 lakh per 10 grams
- Gold Price Increase in 2025
- Nearly 30%
- Average Gold in Emerging Markets Reserves
- 10%
Sources
More Central Banks Than Ever Plan to Build Up Their Gold Hoards
Central banks likely to continue buying gold next 12 months across the world, says WGC survey
Global gold exchange-traded funds saw net withdrawals of $1.8bn in May; AUM fell 1% to US$374 billion
Will Gold Prices Rise Further? Central Bank Gold Buying Doubles in 3 Years, May Increase More
Most Central Banks See Their Gold Holdings Rising In One Year
