Global gold demand hits all time high of 5,000 tonnes in 2025: WGC

Global demand for gold has crossed 5,000 tonnes to reach a new all-time high in 2025, mainly driven by investments, the World Gold Council (WGC) said in a report on Thursday.

Total gold demand hit a new all-time high of 5,002 tonnes in 2025, up from 4,961.9 tonnes in the previous year, as the investment demand surged to 2,175.3 tonnes compared to 1,185.4 tonnes in 2024, driven by safe-haven and diversification factors, according to the WGC's Full-Year 2025 Gold Demand Trends report.

In the October-December quarter, the consumer demand went up by 2 per cent to 1,345.3 tonnes compared with 1,318.5 tonnes in the corresponding period of the previous year.

 

The average gold price globally stood at USD 2,709.7 per ounce in January 2025 on the LMBA (London Bullion Market Association) as compared to USD 2,034 per ounce in January 2024.

Investment demand, both ETFs and bars and coins, went up by 84 per cent in 2025 to 2,175.3 tonnes from 1,185.4 tonnes in the previous year.

This surge in investment demand was due to safe-haven and diversification factors following elevated geopolitical and geoeconomic risk, US dollar weakness, extended stock valuations, and expectations of lower interest rates, especially in the October-December quarter.

Meanwhile, Central bank demand remained elevated in 2025, with the official sector adding 863 tonnes of gold, as the buying gained momentum in the fourth quarter (October-December) at 230 tonnes.

The National Bank of Poland was the largest buyer for the second consecutive year, adding 102 tonnes in 2025, followed by the National Bank of Kazakhstan with 57 tonnes, the Central Bank of Brazil with 43 tonnes, the State Oil Fund of Azerbaijan with 38 tonnes, the Central Bank of Turkey with 27 tonnes, the People's Bank of China with 27 tonnes and the Czech National Bank bought 20 tonnes in 2025.

While annual demand was below the 1,000 tonnes mark surpassed in the previous three years, central bank buying remained a prominent and additive factor in the global gold demand picture, said the WG report.

Amidst a spate of price highs, global jewellery demand softened across the globe as expected throughout the year, declining 18 per cent compared to 2024.

However, the total value of gold jewellery demand increased 18 per cent year-on-year to USD 172 billion, highlighting the relevance of gold for consumers in the long term.

Total supply also reached a new record, as mine production rose to 3,672 tonnes and recycling increased by a modest 3 per cent, remaining subdued despite high prices.

"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," WGC Senior Markets Analyst Louise Street said.

Jewellery demand dipped by only 18 per cent year-on-year against a 67 per cent price increase, highlighting continued consumer willingness to buy at elevated prices, while central banks remained firmly committed to bolstering reserves, she said.

"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," she added.