Central bank gold purchases reached record levels for the third consecutive year in 2025, with the World Gold Council documenting net central bank buying of over 1,000 tonnes for the third straight annual period, driven primarily by emerging market central banks seeking to reduce dollar-denominated reserve exposure. The trend continued into early 2026 with no indication of slowing.

The WGC reports that total global gold demand reached approximately 4,900 tonnes in 2025, combining jewelry fabrication, technology applications, investment demand including ETFs and bars and coins, and central bank purchases. Investment demand showed the strongest year-over-year growth, rising approximately 25% compared to 2024 as geopolitical uncertainty pushed both retail and institutional buyers toward physical and paper gold positions. ETF holdings, which had been declining from 2020 highs, reversed course in late 2025 and continued accumulating into 2026.

US-listed gold ETFs tracked by the WGC showed net inflows of approximately 150 tonnes in the first quarter of 2026, the strongest quarterly inflow since Q1 2020. Gold recycling supply, which tends to rise when prices are elevated, increased modestly but was insufficient to offset demand growth, keeping the market in structural deficit. The Council projects that if central bank demand sustains its current pace and investment demand holds, the gold market will remain in deficit through 2026 and into 2027.

Source: World Gold Council -- https://www.gold.org/goldhub/research