Gold Demand Trends: Q4 and Full Year 2025
A Record-Breaking Year for Gold
In 2025, gold demand and prices reached unprecedented heights, marking a groundbreaking year for the precious metal. Total gold demand, including over-the-counter (OTC) sales, surpassed 5,000 metric tons for the first time, while the gold price set 53 new all-time highs during the year, culminating in a record-breaking value of US$555 billion, a 45% year-over-year increase.
Investment activity played a significant role in driving overall demand growth. Global gold ETF holdings increased by 801 metric tons, the second-strongest year on record, while bar and coin buying accelerated to reach a 12-year high. Safe-haven and diversification motives, along with price-driven factors, consistently fueled investment interest throughout the year.
Central bank purchases of gold reached 863 metric tons, meeting the upper end of our expected range for 2025. These purchases remain historically elevated and geographically widespread but have slowed compared to their recent pace.
Despite the record-breaking gold prices, a decline in jewelry demand volumes was expected. However, sentiment towards gold jewelry remained positive, with global demand climbing 18% to a record US$172 billion.
Technology demand remained stable, supported by continued growth in AI-related applications, even as the consumer electronics space faced disruptions.
Key Highlights:
- The London Bullion Market Association (LBMA) PM gold price set 53 new all-time highs in 2025. The average price in Q4 was a record US$4,135 per ounce, up 55% year-over-year, resulting in the highest annual average of US$3,431 per ounce, a 44% increase.
- Total annual gold supply grew by 1%. Initial estimates indicate mine production increased to a new record of 3,672 metric tons. Recycling activity gained 3% to 1,404 metric tons, a relatively muted response to the 67% increase in the US dollar gold price.
- Demand also set a Q4 record. Total quarterly demand of 1,303 metric tons was the highest ever for a fourth quarter, driven by substantial ETF inflows (175 metric tons) and a 12-year high in bar and coin buying (420 metric tons).
Outlook for 2026:
Looking ahead, with ongoing geopolitical tensions, we anticipate another year of strong gold ETF inflows and robust bar and coin demand, supported by elevated central bank buying. Jewelry demand is expected to remain weak in a persistent high-price environment.
Chart 1: Global Annual Gold Demand Breaches 5,000 Metric Tons and US$500 Billion
*Data as of December 31, 2025.
Gold Supply and Demand by Sector (in metric tons)
| 2024 | 2025 | Annual % Change | Q4'24 | Q4'25 |
|---|---|---|---|---|
Supply | Mine Production | 1 | 947.1 | 957.7 |
| Net Producer Hedging | - | -18.2 | -21.3 |
| Total Mine Supply | 0 | 929.0 | 936.4 |
| Recycled Gold | 3 | 357.7 | 366.4 |
| Total Supply | 1 | 1,286.7 | 1,302.8 |
Demand | Jewelry Fabrication | -19 | 524.3 | 438.0 |
| Jewelry Consumption | -18 | 547.9 | 441.5 |
| Jewelry Inventory | -31 | -3.5 |
| Technology | -1 | 82.1 |
| Electronics | 0 | 69.0 |
| Other Industrial | -5 | 11.0 |
| Dentistry | -6 | 2.0 |
| Investment | 84 | 595.0 |
| Total Bar and Coin | 16 | 420.5 |
| ETFs & Similar Products | 756 | 174.6 |
| Central Banks & Other Institutions | -37 | 230.3 |
| Gold Demand | 2 | 1,345.3 |
| OTC and Other | -42.5 | -42.5 |
| Total Demand | 1 | 1,302.8 |
LBMA Gold Price (US$/oz) | 44 | 4,135.2 |
