Global Gold Demand Surpasses 5,000 Tonnes in 2025, Setting New Record
Global demand for gold has achieved a remarkable milestone, crossing the 5,000-tonne mark to reach an unprecedented all-time high in 2025. According to the latest report from the World Gold Council (WGC), this surge is primarily fueled by robust investment activity, reflecting gold's enduring appeal as a safe-haven asset in turbulent economic times.
Record-Breaking Figures and Investment Boom
Total gold demand soared to a new record of 5,002 tonnes in 2025, up from 4,961.9 tonnes in the previous year. The standout performer was investment demand, which skyrocketed by 84% to 2,175.3 tonnes compared to 1,185.4 tonnes in 2024. This dramatic increase was driven by a combination of safe-haven and diversification factors, as investors sought refuge amid elevated geopolitical and geoeconomic risks, US dollar weakness, extended stock valuations, and expectations of lower interest rates.
In the October-December quarter alone, consumer demand showed resilience, rising by 2% to 1,345.3 tonnes from 1,318.5 tonnes in the same period the previous year. The average global gold price also witnessed a significant uptick, standing at USD 2,709.7 per ounce in January 2025 on the London Bullion Market Association (LBMA), compared to USD 2,034 per ounce in January 2024.
Central Bank Activity and Key Buyers
Central bank demand remained elevated throughout 2025, with the official sector adding 863 tonnes of gold to their reserves. Buying momentum intensified in the fourth quarter, with purchases reaching 230 tonnes. The National Bank of Poland emerged as the largest buyer for the second consecutive year, acquiring 102 tonnes in 2025. Other significant buyers included:
- National Bank of Kazakhstan: 57 tonnes
- Central Bank of Brazil: 43 tonnes
- State Oil Fund of Azerbaijan: 38 tonnes
- Central Bank of Turkey: 27 tonnes
- People's Bank of China: 27 tonnes
- Czech National Bank: 20 tonnes
While annual central bank demand fell below the 1,000-tonne mark seen in the previous three years, it continued to play a prominent and additive role in the global gold demand landscape.
Jewellery Demand and Supply Dynamics
Amidst a series of price highs, global jewellery demand softened as expected, declining by 18% compared to 2024. However, the total value of gold jewellery demand increased by 18% year-on-year to USD 172 billion, underscoring gold's long-term relevance for consumers. On the supply side, total supply also reached a new record, with mine production rising to 3,672 tonnes and recycling increasing by a modest 3%, remaining subdued despite high prices.
Expert Insights and Future Outlook
WGC Senior Markets Analyst Louise Street commented, "The year 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."
She further noted that jewellery demand dipped by only 18% year-on-year against a 67% price increase, highlighting continued consumer willingness to buy at elevated prices. Central banks remained firmly committed to bolstering their reserves, reinforcing gold's strategic importance.
Looking ahead, Street added, "With economic and geopolitical instability showing little sign of retreat in 2026, momentum from last year's strong gold demand is likely to persist. In the first month of this year, gold has already pushed past USD 5,000 an ounce for the first time, underscoring gold's role as a safe haven in uncertain times."
