Gold demand reached a record high in the first quarter of 2025, totaling 1,206 tonnes, the highest since 2016. Investors flocked to gold due to global uncertainty, geopolitical tensions, and volatile stock markets, driving significant inflows into gold-backed ETFs. Average gold prices surged by nearly 40% to approximately $2,860 per ounce. Central banks also increased reserves, adding 244 tonnes, while retail investor interest remained strong, particularly in Asia. However, the price surge led to a sharp decline in jewelry demand.