Global gold demand reached unprecedented levels last year as rising concerns over instability and trade tensions fueled a surge in investment flows, while record-high prices dampened demand for gold jewelry.
According to the World Gold Council on Thursday, global gold demand rose by 1% in 2025 to 5,002 tonnes, marking the highest level ever recorded.
Gold prices surged by 64% in 2025, driven by strong safe-haven demand amid escalating geopolitical tensions and declining confidence in the U.S. dollar.
John Reade, Chief Market Strategist at the World Gold Council, said the key question this year is whether investment demand will remain strong enough to sustain the momentum in the gold market.
The Council expects another year of robust inflows into gold-backed exchange-traded funds (ETFs), alongside continued strong demand for gold bars and coins. Gold ETFs recorded inflows of 801 tonnes in 2025, while demand for bars and coins jumped 16%, reaching their highest level in 12 years.
Total investment demand for gold rose by 84% in 2025 to a record 2,175 tonnes.
However, the Council anticipates that persistently high prices will weigh on jewelry demand this year and lead to a slowdown in central bank purchases, which are expected to ease to around 850 tonnes, compared with 863 tonnes in 2025—although still well above pre-2022 levels.
Gold jewelry demand fell by 18% in 2025, with purchases in China declining by 24% to their lowest level since 2009, highlighting the impact of elevated prices on consumer demand.
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