HT Bureau
GUWAHATI, Jan 29: Global gold demand touched an all-time high in 2025 as geopolitical tensions and economic uncertainty pushed investors towards safe-haven assets, according to the World Gold Council’s Full-Year 2025 Gold Demand Trends report.
The report shows that total gold demand rose to a record 5,002 tonnes last year, with a strong fourth quarter sealing what the Council described as a stellar year for the precious metal.
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In value terms, annual gold demand climbed to an unprecedented USD 555 billion, driven largely by a surge in investment flows.
Global investment demand emerged as the primary driver, reaching a landmark 2,175 tonnes. Investors across markets turned to gold for diversification and stability, resulting in net inflows of 801 tonnes into gold-backed exchange-traded funds over the year.
Physical investment also remained strong, with global bar and coin demand amounting to 1,374 tonnes, valued at around USD 154 billion.
China and India played a dominant role in this segment, together accounting for more than half of global bar and coin demand.
China recorded a year-on-year increase of 28 per cent, while India saw demand rise by 17 per cent, reflecting strong investor appetite in the world’s two largest consumer markets.
Central banks continued to be significant buyers of gold in 2025, adding 863 tonnes to official reserves.
Although this was lower than the more than 1,000 tonnes accumulated annually over the previous three years, the official sector remained a key pillar of global demand.
In contrast, jewellery demand softened in volume terms, declining 18 per cent compared to 2024 amid a sharp rise in prices.
However, the total value of jewellery demand increased by 18 per cent year-on-year to USD 172 billion, underlining gold’s enduring appeal among consumers despite elevated price levels.
On the supply side, total gold supply also reached a record level.
Mine production rose to 3,672 tonnes, while recycling increased by a modest 3 per cent, remaining relatively subdued even as prices hit new highs.
Commenting on the trends, Louise Street, Senior Markets Analyst at the World Gold Council, said 2025 was marked by surging demand and rapidly rising prices as economic and geopolitical risks became a persistent feature of the global landscape.
She noted that while investment demand led the rally, jewellery consumers showed resilience, and central banks remained committed to strengthening their reserves.
Street added that with instability showing little sign of easing in 2026, the momentum seen last year is likely to continue.
She pointed out that gold has already crossed USD 5,000 per ounce in the first month of the new year, reinforcing its status as a safe-haven asset in uncertain times.
