Gold continued its strong momentum in August 2025, closing the month at USD 3,429 per ounce, a 3.9 percent monthly gain that pushed its year-to-date rise to 31.4 percent, according to the World Gold Council (WGC). The yellow metal is now trading just below its all-time high of USD 3,435 per ounce, set in June 2025.

The rally was driven by a weaker US dollar, robust inflows into gold-backed ETFs, and persistent geopolitical tensions. The WGC noted that a growing likelihood of a September US rate cut has also supported prices.

Global gold ETFs witnessed USD 5.5 billion in inflows during August, led by funds in North America and Europe, while Asia recorded outflows. WGC highlighted that this marked the third consecutive month of inflows, dominated by Western investors.

In China, strong equity performance—led by a 10 percent rise in the CSI300 Index—drew investors away from gold. By contrast, India logged its fourth straight month of ETF inflows, reflecting heightened safe-haven demand amid weak equities and global trade uncertainties, though these were not enough to balance Chinese outflows.

Domestically, India’s gold market was exceptionally strong. Prices on the MCX touched Rs 1,01,967 per 10 grams, reflecting a 4 percent monthly gain in August and an impressive 34.3 percent surge year-to-date. The WGC said this showed robust investment demand and a resilient appetite despite record-high prices.

Looking ahead, WGC expects stagflationary pressures in the US, potential rate cuts, and rising policy risks to continue influencing global gold prices, while emerging market demand may cool temporarily.