Gold Demand Hits Record High: Surged to Over 5,000 Tonnes in 2025

During 2025, the gold demand surged to an all-time high of 5,002 tonnes, as mentioned inthe Gold Demand Trends report by the World Gold Council (WGC). This rising demand was backed by the record-breaking fourth quarter, as geopolitical and economic uncertainties drove investors to elevate gold purchases, pushing the annual value to US $555 billion.

Investment Demand Leads the Surge

Global investment demand was the main driver behind gold’s historic performance, reaching 2,175 tonnes. Investors seeking safe-haven assets and portfolio diversification flocked to gold ETFs, which saw inflows of 801 tonnes over the year.

Physical gold also remained highly sought after, with demand for bars and coins totalling 1,374 tonnes, equivalent to US $154 billion. China (+28% year-on-year) and India (+17% year-on-year) dominated this segment, together accounting for over half of all demand.

Central banks continued to play a vital role in global gold demand, adding 863 tonnes in 2025. Although slightly below the 1,000-tonne level seen in recent years, official sector purchases remained a significant contributor to overall market dynamics.

Jewellery Demand Softens but Value Rises

Gold jewellery demand declined by 18% compared to 2024, reflecting the impact of high prices. However, the total value of jewellery sales increased 18% year-on-year to US $172 billion, highlighting gold’s continued importance to consumers worldwide.

Global gold supply rose to meet demand, with mine production hitting 3,672 tonnes. Recycling contributed modestly with a 3% increase, remaining relatively subdued despite elevated prices.

Also Read: Gold Rally Nears $5,600, Silver Advancing Near $120: What are the Factors Driving Rally?

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% yearon-year against a 67% price increase – highlighting continued consumer willingness to buy at elevated prices, and central banks remained firmly committed to bolstering reserves. 

“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 US $5,000/oz for the first time, underscoring gold’s role as a safe haven in uncertain times.”

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.