The World Gold Council’s "Gold Demand Trends Report for 2025" revealed that total demand reached 5,002 tonnes, the highest level in its history. The final quarter played a key role in this performance, as ongoing geopolitical and economic risks drove record investment inflows into gold worth $555 billion in a single year.

The same report notes that global investment reached a historic level of 2,175 tonnes. Investors worldwide turned to ETFs, investment funds traded globally, adding 801 tonnes over the year, alongside consistent purchase of gold bars and coins, which rose to 1,374 tonnes, equivalent to $154 billion.

Central banks also maintained a strong pace of purchases, adding 863 tonnes to their reserves in 2025. Although this level is below the 1,000-tonne threshold surpassed in the previous three years, central bank buying remained a key factor supporting global demand.

A worker polishes gold bars at a factory in Sydney. (AFP)

In parallel with rising prices, global demand for jewelry declined by 18% compared with 2024, a drop expected by commodity analysts. However, the monetary value of the remaining demand increased by 18% to reach $172 billion, reflecting gold’s enduring status among consumers over the long term.

On the supply side, total supply reached a new record level, with mine production rising to 3,672 tonnes, while recycling increased by only 3% despite higher prices.

Louise Street, a Senior Markets Analyst at the World Gold Council, said: “2025 saw notable growth in gold demand and an unprecedented rise in prices, as consumers and investors bought and held gold amid prevailing economic and geopolitical instability. Investment demand was the main driver of this rise, despite support from other sectors. With jewelry demand falling by 18%, the 67% increase in prices highlights the resilience of demand even at elevated price levels, while central banks continued to steadily build their reserves.”

She added: “With uncertainty continuing into 2026, strong momentum in gold demand is likely to persist. In the first month of this year, gold surpassed the $5,000-per-ounce threshold for the first time ever, reinforcing its role as a safe haven in times of stress.”