Gold breaks all records in 2025 as Global Demand soars to historic high

The World Gold Council’s Full-Year 2025 Gold Demand Trends report reveals that total gold demand hit a new all-time high of 5,002 tonnes in 2025, marking one of the most extraordinary years in the history of the precious metal.

A record-setting fourth quarter sealed the year’s momentum, as escalating geopolitical tensions and persistent economic uncertainty pushed investors worldwide toward gold as a trusted safe haven. In value terms, annual gold demand surged to an estimated US $555 billion, underscoring gold’s enduring global relevance.

Investment demand powers gold’s record-breaking year

Investment demand emerged as the clear driving force behind gold’s stellar performance. Global investment demand climbed to a landmark 2,175 tonnes, the highest level on record, as investors sought diversification and long-term security. Gold ETFs played a pivotal role, with net inflows of 801 tonnes over the year, reflecting renewed confidence in gold-backed financial instruments.

Physical gold also attracted strong interest. Global bar and coin demand reached 1,374 tonnes, valued at approximately US $154 billion. China and India dominated this segment, posting year-on-year growth of 28% and 17% respectively. Together, these two markets accounted for more than half of total global bar and coin demand, highlighting Asia’s continued influence on the gold market.

Central banks remained a vital pillar of demand throughout 2025. Although official sector purchases eased slightly from the exceptional levels of the previous three years, central banks still added a substantial 863 tonnes of gold to their reserves. This sustained buying reinforced gold’s strategic importance in reserve diversification amid global financial realignments.

Jewellery demand, by contrast, softened in volume terms as prices climbed to record highs. Global jewellery consumption declined 18% compared to 2024. However, the value of jewellery demand rose 18% year-on-year to US $172 billion, demonstrating that consumers continue to view gold jewellery as a long-term store of value despite elevated prices.

On the supply side, total gold supply also reached a new record. Mine production increased to 3,672 tonnes, while recycling activity rose modestly by 3%, remaining relatively subdued even in a high-price environment.

Louise Street, Senior Markets Analyst from the World Gold Council, commented:

“2025 saw surging demand for gold and rocketing prices. Consumers and investors alike bought and held gold in an environment where economic and geopolitical risks have become the new normal. Investment demand stole the show as investors raced to access gold through all available routes, but other segments played a supporting role.

“Jewellery demand dipped by only 18% year-on-year against a 67% price increase – highlighting continued consumer willingness to buy at elevated prices, and central banks remained firmly committed to bolstering reserves,” said Street.

“With economic and geopolitical uncertainty showing little sign of retreat in 2026, momentum from last year’s strong gold demand is likely to persist. Price rallies so far this year are inching gold towards US$5,000/oz, suggesting that investors will continue to turn to gold as a long-term store of value and source of diversification.”

As 2026 unfolds, the outlook for gold remains robust. With uncertainty entrenched in global markets and prices edging closer to the US$5,000 per ounce mark, gold’s role as a strategic asset, inflation hedge, and diversification tool appears stronger than ever.