Singapore gold demand hits record high as prices soar

[SINGAPORE] Investor interest in gold remained robust in Singapore during the first quarter of 2025, as bullion prices soared past the US$3,000-per-ounce mark for the first time.

According to the World Gold Council’s (WGC) latest data, demand for gold bars and coins in Singapore jumped 35 per cent year on year to 2.5 tonnes—the highest quarterly volume since the WGC began tracking in 2010.

Analysts attribute the sustained interest to Singapore’s role as a key regional financial hub. Wealthy investors in the city-state are increasingly turning to physical gold as a hedge against inflation and currency volatility. The country’s strong regulatory framework and mature gold trading infrastructure have also reinforced bullion’s appeal as a reliable store of value.

Elsewhere in Southeast Asia, gold bar and coin demand also climbed at double-digit rates in Indonesia, Malaysia, and Thailand during the quarter, the WGC said in its Q1 report released on April 30.

Vietnam, however, saw a 15 per cent year-on-year decline in gold bar and coin demand, with purchases totalling 12 tonnes. The drop was largely driven by limited supply and higher premiums, exacerbated by the depreciation of the Vietnamese dong.

Experts noted that Vietnam’s gold market is particularly sensitive to domestic policy changes. Recent central bank measures to curb gold imports and tighten supply—intended to support the local currency—have widened the gap between domestic and international gold prices, dampening investor sentiment despite gold’s deep-rooted cultural significance.

Across ASEAN markets, jewellery demand fell in tandem with soaring prices. In Singapore, gold jewellery consumption dropped 20 per cent year on year to 1.7 tonnes. Fan Shaokai, WGC’s head of Asia-Pacific (excluding China) and global head of central banks, noted that global jewellery demand has sunk to its lowest since the COVID-19 pandemic in 2020, calling the downturn “unsurprising” given gold’s 20 record price highs during the quarter.

A broader shift in consumer preferences is also playing a role. Younger consumers are increasingly favouring lab-grown diamonds and alternative luxury items over traditional gold jewellery. In response, jewellers are pivoting towards lighter, design-oriented pieces to cater to budget-conscious buyers.

On the institutional front, global central banks added 243.7 tonnes of gold to their reserves in the first quarter—marking the 16th straight year of net buying. Although this represents a 21 per cent decrease from the same period last year, the WGC highlighted that the volume was still 24 per cent above the five-year quarterly average and just 9 per cent below the average for the past three years.

The Monetary Authority of Singapore (MAS) sold three tonnes of gold during the quarter, maintaining its total holdings at around 220 tonnes. The WGC said the move aligns with the central bank’s strategic goals to rebalance reserves for improved liquidity and returns, and does not indicate a shift away from gold over the longer term.

Gold investment demand globally—which includes both physical bullion and gold-backed exchange-traded funds (ETFs)—surged 170 per cent year on year to 551.9 tonnes. This resurgence was largely driven by strong inflows into ETFs, which reversed last year’s net outflows of 113 tonnes with net purchases of 226.5 tonnes in Q1 2025.

Overall global gold demand stood at 1,206 tonnes, up 1 per cent from the same period last year. This total includes investment, jewellery, central bank purchases, and industrial uses.

“Given the continued geopolitical tensions and market uncertainty, gold remains a resilient safe-haven asset,” Mr Fan said. “This quarter marked the strongest first-quarter global gold demand since Q1 2016.”

Looking ahead, the WGC expects persistent risks—ranging from stagflation and a potential recession to heightened geopolitical strife and rising US deficits—to keep investment demand for gold elevated.

Louise Street, WGC’s senior markets analyst, said the uncertain macroeconomic environment could support further upside for gold. While demand for gold bars and coins is likely to remain “resilient rather than strong” due to high prices, jewellery demand may stay subdued, she noted. “Any increase in jewellery recycling could be limited,” the report added, pointing to low inventories near markets, minimal trade-in activity, and a lack of urgent selling.