Global gold demand reached an all-time high in 2025 as investors and central banks rushed into the metal amid rising economic and geopolitical uncertainty.
On Thursday, the World Gold Council said total demand climbed to 5,002 tonnes last year, setting a new annual record. A surge in fourth-quarter buying capped a year defined by volatile markets, conflict risk, and persistent inflation concerns.
In value terms, total gold demand reached about USD$555 billion, driven largely by investment flows. Investment demand hit 2,175 tonnes, making it the dominant force behind gold’s record-setting performance. Across global markets, investors sought protection and diversification as traditional assets faced mounting pressure. Consequently, gold-backed exchange traded funds attracted net inflows of 801 tonnes during the year.
Investors also bought physical metal at a strong pace. Global bar and coin demand reached 1,374 tonnes, valued at roughly USD$154 billion. Additionally, China recorded a 28 per cent year-on-year increase in bar and coin purchases. India followed with a 17 per cent annual gain. Together, the two countries accounted for more than half of global bar and coin demand.
Central banks continued adding gold to their reserves in 2025, although purchases slowed from recent peaks. Official sector buyers acquired 863 tonnes over the year. However, that total remained below the 1,000-tonne level reached in each of the prior three years. Still, central bank buying remained an important contributor to overall demand.
Meanwhile, jewellery demand declined as higher prices reduced consumer purchasing volumes.
Global jewellery consumption fell 18 per cent compared to 2024. However, the total value of jewellery demand rose 18 per cent year-on-year to USD$172 billion. That increase reflected higher prices rather than higher volumes.
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Investors treat instability as a long term condition
Consumers continued purchasing gold jewellery despite a sharp rise in prices during the year.
Gold prices climbed roughly 67 per cent in 2025, according to the council. Consequently, buyers adjusted purchasing habits rather than exiting the market entirely. On the supply side, total gold supply also reached a new record.
Mine production rose to 3,672 tonnes during the year. Additionally, recycled gold supply increased by three per cent. However, recycling growth remained limited despite elevated prices.
Louise Street, a senior markets analyst at the World Gold Council, said investors treated instability as a long-term condition. She said buyers increasingly viewed gold as a strategic holding rather than a short-term trade. Furthermore, she noted that demand strength extended beyond investors to central banks and consumers.
Street added that uncertainty showed little sign of easing in 2026. In addition, gold prices already pushed past USD$5,000 per ounce in January. She said the move reinforced gold’s role as a store of value during periods of disruption.
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