Gold-Backed Cryptocurrency Minting Reaches Three-Year High Amid Central Bank Slowdown
The gold market is experiencing a notable shift in activity:
- Central bank buying has slowed, while demand for exchange-traded funds (ETFs) and gold-backed cryptocurrencies is increasing.
- Net minting volume for gold-backed tokens reached a three-year high, with over $80 million minted in the past month.
- This increase raised the sector's market cap by 6% to $1.43 billion, and monthly transfer volume grew by 77% to $1.27 billion.
- The World Gold Council reported total gold demand of 1,206 tonnes in Q1 2025, marking a 1% year-over-year rise.
- Central bank purchases fell to 244 tonnes from 365 tonnes in Q4 2024.
- Investment demand via gold ETFs more than doubled to 552 tonnes.
- The average quarterly price of gold hit a record $2,860 per ounce, up 38% year-on-year, though it dipped 2.35% last week.
- Current spot gold price stands at $3,240.
- Jewelry demand dropped to pandemic-era lows, but bar and coin demand remained strong, particularly in China.