The gold price set 53 new all-time highs in 2025, according to the World Gold Council. Gold had started last year below US$3,000/oz and neared $4,500/oz by year-end. After a record-breaking start to 2026, peaking above $5,600/oz in January, what will underpin price and demand as 2026 further unfolds?
The main driver behind gold’s “remarkable and record-breaking year” in 2025 was global investment demand, which reached a landmark level of 2,175 tonnes, the WGC said.
Global gold ETF holdings grew 801t – the second strongest year on record – while bar and coin buying shot to a 12-year high. Central bank demand remained high at 863t, but below the 1,000t mark of the previous three years.
The council said total demand exceeded 5,000t for the first time, with record prices yielding an unprecedented value of $555 billion, up 45% year-on-year.
Economic and geopolitical concerns served to strengthen gold’s allure as a safe-haven asset, and investor interest was also driven by diversification motives.
WGC’s head of Asia (ex-China) and global head of central banks Shaokai Fan said in Australia, demand for physical bars and coins rose 35% year-on-year to 15t.
“What stands out is not just the scale of the increase, but its persistence, capped by a 45% year-on-year surge to 5.3t in the December quarter, which suggests growing confidence in gold as a long-term allocation rather than a short-term response to market volatility,” he said.
“This constructive outlook was mirrored in ETF investment, with Australian gold ETF holdings rising by 9.4t to reach 52t by the end of 2025, lifting ETF AUM by US$1 billion, the largest annual increase on record.”
He said the council believed where demand had shifted most meaningfully since 2020 was in investor intent.
“Rather than responding to crisis-driven market stress, investors are increasingly turning to gold as a strategic portfolio diversifier, given traditional asset classes such as equities and bonds have become more correlated, particularly during periods of sticky inflation,” he said.
Markets were spooked at the end of January by US president Donald Trump’s announcement of Kevin Warsh as the new chair of the Federal Reserve, prompting debate over the future direction of US monetary policy and potential political pressure, plus a sharp sell-off of precious metals.
Meanwhile instability continues around the globe, with the war in Ukraine, Greenland up for grabs according to Trump and unrest from Venezuela to the Middle East.
So if economic uncertainties and continuing geopolitical risks are becoming the “new normal”, will this dampen demand for the safe-haven asset?
Many banks remain bullish and have been widely reported backing bullion to recover from its recent selloff, including Deutsche Bank AG this week standing by its forecast of $6,000/oz and JP Morgan tipping $6,300/oz by the end of this year.
The WGC said tense geopolitics looked set to be a major contributor to gold’s fortunes again in 2026, “supporting a continuation of elevated central bank demand, strong gold ETF inflows and robust bar and coin demand”.
Bond market uncertainty, expected policy rate cuts and pressure on the US dollar were likely key factors supporting continued strength across gold investment sectors, it said.
