The Impact of Geopolitical and Macroeconomic Factors on Gold Prices

In this episode, we chat with Krishan Gopaul, Senior Research Analyst at the World Gold Council, who are the authority on Gold. They explore the unique gold market and industry research, producing analysis, commentary, and insights on the precious metal to improve the understanding, access, and trust in the yellow metal. Krishan has been with the World Council for over 14 years and is here today to give us an update on their latest Gold Demands Trend report for the first quarter of this year, some of the main drivers of gold at the moment, investor demand, and the activities of the central banks, and more. KEY TAKEAWAYS In the first quarter of 2025, total gold demand increased by 1% to 1,206 tonnes, marking the highest first quarter of gold demand since 2016. Investment demand, particularly from gold ETFs, was a significant driver of this increase. The main drivers for gold demand included macroeconomic factors such as inflation concerns and geopolitical uncertainties. Central banks continued to be a major source of demand, with ongoing purchases contributing to the overall support for gold prices. Retail investment in gold, particularly in bars and coins, saw a 3% year-on-year increase in the first quarter. This growth was driven by heightened uncertainty in the market, prompting both institutional and retail investors to seek gold as a safe haven asset. Central banks have been net buyers of gold since 2010, with significant purchases continuing into 2025. Emerging market central banks, such as those in Poland and China, were noted as key purchasers, maintaining a robust demand for gold. Jewellery demand faced pressure due to rising gold prices, with a 21% year-on-year decline in consumption. However, the value of gold jewellery sales increased by 40% year-on-year, indicating that consumers were spending more despite purchasing less volume, reflecting a shift towards viewing jewellery as an investment. BEST MOMENTS "We saw total gold demand in the first quarter up 1% to 1,206 tonnes, the highest first quarter of gold demand that we have seen since 2016." "In times of heightened uncertainty, gold tends to perform well; people see it as a safe haven asset." "Central banks have been net buyers of gold since 2010, and this trend is likely to persist." "Jewellery consumption was down 21% year on year, unsurprisingly given the rapid increase in price that we've seen." VALUABLE RESOURCES Mail:        [e-mail] LinkedIn: https://www.linkedin.com/in/rob-tyson-3a26a68/ X:              https://twitter.com/MiningRobTyson YouTube: https://www.youtube.com/c/DigDeepTheMiningPodcast  Web:        http://www.mining-international.org This episode is sponsored by Hawcroft, leaders in property risk management since 1992. They offer: Insurance risk surveys recognised as an industry standard Construction risk reviews Asset criticality assessments and more Working across over 600 sites globally, Hawcroft supports mining, processing, smelting, power, refining, ports, and rail operations. For bespoke property risk management services, visit www.hawcroft.com GDT Q1 2025 Press Release: https://bit.ly/3YwykqH  GDT Trends Q1 2025 Report: https://bit.ly/3ERvS7z  GUEST SOCIALS https://www.gold.org/ https://www.linkedin.com/in/krishan-gopaul-32576114/ https://www.gold.org/goldhub/research/gold-demand-trends/gold-demand-trends-q1-2025 ABOUT THE HOST Rob Tyson is the Founder and Director of Mining International Ltd, a leading global recruitment and headhunting consultancy based in the UK specialising in all areas of mining across the globe from first-world to third-world countries from Africa, Europe, the Middle East, Asia, and Australia. We source, headhunt, and discover new and top talent through a targeted approach and search methodology and have a proven track record in sourcing and positioning exceptional candidates into our clients' organisations in any mining discipline or level. Mining Internati