Gold experienced an unprecedented year in 2025, with demand surpassing 5,000 tonnes for the first time and prices soaring over 70% to reach $4,000 an ounce. Factors such as geopolitical tensions and investment in safe-haven assets drove this surge. Analysts predict continued strength into 2026 despite recent price dips.
In 2025, gold's performance marked a historic chapter, as detailed in the World Gold Council's Gold Demand Trends report. Total demand, including over-the-counter trading, exceeded 5,000 tonnes for the first time, generating a value of $555 billion—equivalent to Thailand's GDP and a 45% rise from 2024.
The price hit 53 all-time highs, averaging one per week, with key milestones at $3,000 per ounce in April and $4,000 in October, reflecting a more than 70% increase for the year. Investment activity fueled this growth: global gold exchange-traded fund holdings expanded by 801 tonnes, the second-best year on record, while bar and coin purchases reached a 12-year high.
Geopolitical uncertainties, including US tariffs under President Donald Trump, tensions with Iran, military actions in Venezuela, and proposals to acquire Greenland, bolstered gold's appeal as a safe-haven asset. Even equities markets rose alongside gold, an unusual tandem surge.
Central bank purchases declined 21% from 2024 but stayed robust, particularly from emerging markets seeking to lessen reliance on the US dollar. The report anticipates strong ETF inflows, robust bar and coin demand, and elevated central bank buying in 2026 amid ongoing tensions.
By early 2026, prices breached $5,000 per ounce but fell sharply in late January from a peak above $5,600. JPMorganChase forecasts potential prices of $8,000 to $8,500 per ounce by decade's end if investor allocations rise. Deutsche Bank and Société Générale project $6,000 this year, suggesting more records ahead.