Gold demand reached a historic high in 2025 as investors sought shelter from heightened global instability and trade frictions, according to data released by the World Gold Council on Thursday. Total global demand rose by 1% to 5,002 metric tons, marking the largest annual tally on record.
Investment appetite was the primary driver of the increase, with market participants channeling funds into gold as a perceived safe-haven asset. This upward pressure in demand came even as elevated, record-high prices discouraged consumers from purchasing gold jewelry.
WGC outlook and commentary
The World Gold Council signaled expectations for continued momentum into the next year. The organization anticipates another year of strong inflows into gold-backed exchange-traded funds and sustained robust demand for physical gold in 2026. On the policy side, central bank acquisitions are projected to moderate slightly to 850 tons in 2026, down from 863 tons in 2025, though the council noted this projected level remains elevated relative to pre-2022 figures.
"The biggest question this year will be whether investment demand is going to be strong enough to maintain the strength of the gold market," said John Reade, senior market strategist at the World Gold Council.
Summary of key developments
- Global gold demand rose 1% to 5,002 metric tons in 2025, the highest annual total on record.
- Investment flows, including significant activity in gold-backed ETFs, were a major contributor to the rise in demand.
- Record-high gold prices constrained jewelry purchases even as physical and ETF demand strengthened.
Implications for markets and sectors
- Precious metals markets saw elevated investor interest, supporting prices despite some consumer pullback in the jewelry sector.
- ETF providers and bullion dealers benefited from sustained inflows and physical demand.
- Central bank buying, while projected to ease modestly, continues at levels higher than those before 2022, affecting official-sector demand dynamics.
Risks and uncertainties highlighted by the council
- Investment demand faces uncertainty - whether it will remain strong enough to uphold gold-market strength is an open question emphasized by the World Gold Council.
- Record-high prices are a headwind for jewelry demand, potentially limiting growth in that consumer segment.
- Projected moderation in central bank purchases to 850 tons in 2026 from 863 tons in 2025 introduces some uncertainty around official demand, even though levels are still elevated versus pre-2022.
Data released by the World Gold Council on Thursday frames a market where investor demand has offset softer jewelry consumption, and where central bank behavior will remain an important variable heading into 2026.