Gold hit 53 new all-time highs in 2025, investment rises by 84%; central bank gold purchases remain historically elevated

Gold prices touched new all-time highs a total of 53 times in 2025, with total gold demand across the world crossing 5,000 tonnes for the first time ever, yielding an unprecedented value of $555 billion (approximately ₹50.9 lakh crore). 

The total demand for gold globally increased to 5,002.3 tonnes during the previous calendar year, with a record-breaking market value of nearly ₹51 lakh crore, according to a report by the World Gold Council (WGC) published on January 29, 2026.

As per the WGC report, the average price of gold in the fourth quarter of 2025 was $4,135 per ounce, marking a 55% increase from Q4 2024, while the highest annual average for 2025 was $3,431 per ounce, up 44% YoY. 

“The LBMA (PM) gold price set 53 new all-time highs during 2025. The average Q4 price was a record US$4,135/oz (+55% y/y), resulting in the highest annual average of US$3,431/oz (+44% y/y),” the WGC report said. 

Gold investment and jewellery demand

Investment in gold in 2025 increased significantly by 84% year-on-year (YoY), as global gold ETF holdings surged by 801 tonnes. “Heightened investment activity drove overall demand growth: global gold ETF holdings grew 801t – the second strongest year on record – while bar and coin buying accelerated to reach a 12-year high,” the report said. 

The rise in demand was due to higher safe-haven demand for the precious metal. Gold is a safe-haven metal; its price rises during uncertain times. In 2025, rising geopolitical tensions, falling currencies and fluctuating markets strengthened the safe-haven demand for the metal. 

“Safe-haven and diversification motives were consistent themes driving investment interest throughout the year, along with price-driven motivations,” the report said.   

On the other hand, jewellery consumption across the world fell by 18% YoY. 

Demand for gold jewellery is higher in South Asian countries, including India, which has cultural and traditional significance attached to the yellow metal. Due to record-high gold prices, India's gold demand fell by 11% in 2025. 

Overall, gold jewellery demand fell in 2025 amid rising prices as gold became more of an investment commodity than a consumer good. This is primarily because gold prices rose dramatically in 2025, soaring over 74% in India’s domestic market and nearly 60% globally. 

However, sentiment towards gold jewellery remained positive, the WGC report said, considering the 18% growth in value of global demand. 

“A decline in jewellery demand volumes was entirely expected in the environment of successive record gold price highs. Sentiment towards gold jewellery, however, remained very positive, as evidenced by the value of global demand, which climbed 18% to a record $172 billion,” the report noted. 

Gold demand trends 2025

Central bank gold buying

In the last few years, central bank gold buying has grown significantly, as countries continue to buy gold as a hedge against inflation and economic uncertainties. Central banks around the world have been reducing their reliance on the US dollar, especially in countries like India and China. 

In 2025, central banks purchased 863 tonnes of gold, down from 1,045 tonnes in 2024. “Central bank purchases of 863t reached the upper end of our expected 2025 range; they remain historically elevated and geographically widespread but have slowed from their recent pace,” the WGC report said.