Gold has begun 2025 spectacularly. From the minimum that marked in 2.83 USD/ounce in Dec24, the ounce at scaled positions almost without rest until marking a new historical maximum in the 3,500 USD/ounce. The movement has been vertical causing the price to reach levels of volatility and overcompra not seen in the last 5 years.
Gold in graph weekly With ATR % (4) and RSI (14), TrainingView graph at 06/05/25
The bullish excesses are high and, arriving at this time, one might ask if the activity is accompanying the increases. This question can be resolved thanks to the demand statistics that quarterly collect the World Gold Council (WGC). In this case, in aggregate terms, it should be noted that despite the strong rise (exceeds 25 percentage points), the demand has remained stable, 1,310 of tons in 1T25 vs. 1.313 in 4T24.
Ishares Gold Trust in Graphic weekly With turnover momentum and trix, extracted from tradingview at 06/05/25
-The appetite for precious metal is maintained despite price increases, good sign for the background trend. However, if we break down the aggregate demand in its different games, we find interesting information.
- In the first place, the demand for jewelry if it suffers from the price increase, lowering 86.4 tons in the last quarter, 16% less.
- Second, central banks are decreasing purchases remarkably, lower than 365.1 tons to 243.7 tons in the last quarter, 33% less.
- Thirdly, the demand for physical ETFs purchases is triggered by increasing by 207.8 tons (+1,113% quarterly) that compensates for the fall of the previous games.
Spdr gold trust en chart weekly With turnover momentum and trix, extracted from tradingview at 06/05/25
The purchase of gold through ETFs (more agile than the purchase of bullion and coins physics) and is more used by investors with a more short -term temporary horizon. A more volatile demand that could be qualified as “weak hands” if we compare it to the demand of the central banks and the physical purchase of gold that could be considered “strong hands.”
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