Gold demand hits record as prices and investment surge

Gold demand reaches record highs in 2025 as ETF inflows surge, while investors question how far the rally can extend.

Gold demand reaches record highs in 2025 as ETF inflows surge, while investors question how far the rally can extend.Global gold demand, including over-the-counter transactions, exceeds 5,000 tonnes for the first time in 2025, supported by record prices and heightened investor interest, according to the World Gold Council.

The surge in demand coincides with a record annual gold price, with the metal setting 53 new all-time highs during the year and delivering an unprecedented total market value of US$555 billion.

Investment activity drives the bulk of demand growth, with global gold ETF holdings rising by 801 tonnes, the second-strongest year on record, while bar and coin buying reaches a 12-year high.

Safe-haven demand and diversification motives remain consistent themes, alongside price-driven momentum buying during the rally.

Central banks continue to accumulate gold, purchasing 863 tonnes during the year, although buying slows from recent peaks.

The World Gold Council noted that central bank demand remains historically elevated and geographically widespread despite moderating from recent record levels.

Jewellery demand declined sharply in volume terms amid record gold prices, but the value of jewellery purchases climbed 18 per cent to a record US$172 billion, reflecting strong consumer appetite despite affordability constraints.

Technology demand remained broadly stable, supported by growth in AI-related applications despite disruption in consumer electronics markets.