Major investment banks’ gold trading up 60 per cent in 2025

According to a recent study by the International Financing Review, the world’s twelve largest banks recorded a 60 per cent increase in gold trading over the first half of 2025 year-on-year, trading more gold than they have in 10 years. This comes as no surprise: with a 40 per cent price increase in the US and recently breaking the US$3,800 mark, gold is one of the best-performing asset classes this year. However, this is not the only reason why, according to the World Gold Council, more than US$319 billion worth of gold has been traded so far in 2025 – per day.

Trump tariff threats drive gold purchases and sales

When rumours circulated in spring 2025 that the US government was considering the introduction of tariffs on gold, several investors at least partially divested their gold holdings to avoid potential unforeseen government levies. Others, however, sought a safe haven in gold to hedge their portfolios against the market volatility expected as a result of the announced import tariffs on other goods. In August 2025, Trump clarified that there would be no tariffs on gold, which, alongside the price development of the precious metal and the continuing US dollar weakness, led to a new buying spree. 

Demand for gold-backed ETFs and ETCs unabated despite record prices

Continuing the trend of recent years, central banks have continued to stock up on gold, by over 1,000 tonnes. Also, institutional and private investors are obviously not deterred by the price of gold. According to the World Gold Council’s latest ETF/ETC trading statistics, gold funds, which were already the largest in terms of volume, grew by 19.1 per cent in the US and by 10.7 per cent in Europe, where the world’s second-largest gold holdings are managed in ETCs. Overall, gold-backed ETFs/ETCs have seen inflows of 1,139.1 tonnes of gold worldwide so far in 2025, as well as outflows of 579 tonnes, resulting in net inflows of 560 tonnes, an increase of 17.4 per cent year-on-year.