Gold Demand Soars to New Heights in 2025: Implications for Investors and Businesses in Oman
The World Gold Council’s Full-Year 2025 Gold Demand Trends report has revealed that total gold demand reached an unprecedented high of 5,002 tonnes last year. A record-breaking fourth quarter capped a remarkable year, driven by ongoing geopolitical and economic uncertainties that significantly boosted gold investment, which totaled US $555 billion annually.
Global investment demand surged to a landmark 2,175 tonnes, emerging as the primary catalyst behind gold’s exceptional performance in 2025. Worldwide, investors seeking safe-haven assets and portfolio diversification heavily invested in gold ETFs, adding a substantial 801 tonnes over the year. Additionally, bullion purchases were strong, with global bar and coin demand hitting 1,374 tonnes, valued at US $154 billion.
Two major markets, China and India, recorded noteworthy growth, with demand rising by 28% and 17% year-on-year, respectively, together accounting for over half of the global bar and coin demand.
Central bank purchases remained robust in 2025, with the official sector acquiring 863 tonnes of gold. Although this figure was below the 1,000-tonne mark surpassed in each of the previous three years, central bank buying continued to play a significant and supportive role in the overall gold demand landscape.
Amidst record-high gold prices, global jewellery demand softened as anticipated, declining by 18% compared to 2024. However, the total value of gold jewellery demand rose by 18% year-over-year, reaching US $172 billion, underscoring gold’s lasting appeal to consumers.
Total gold supply also hit a new record, driven by increased mine production, which rose to 3,672 tonnes. Recycling showed a modest 3% increase, remaining subdued despite elevated prices.
Louise Street, Senior Markets Analyst at the World Gold Council, noted: “2025 witnessed soaring gold demand and rapidly rising prices. Both consumers and investors purchased and held gold amid an environment where economic and geopolitical risks have become the norm. Investment demand dominated as investors sought access to gold through every available channel. Jewellery demand declined by only 18% despite a 67% price increase, illustrating consumers’ continued willingness to buy gold at high prices. Meanwhile, central banks stayed firmly committed to augmenting their reserves.”
She added, “With economic and geopolitical instability showing little sign of easing in 2026, last year’s strong momentum in gold demand is expected to continue. In January alone, gold prices have already surpassed US $5,000 per ounce for the first time, highlighting gold’s crucial role as a safe haven during uncertain times.”
Special Analysis by Omanet | Navigate Oman’s Market
The World Gold Council’s record-breaking gold demand in 2025, driven by geopolitical and economic uncertainties, signals a robust opportunity for Omani businesses and investors to leverage gold as a safe haven asset. With sustained central bank buying and rising investor interest, smart entrepreneurs should consider expanding gold-related investment products and services to capture growing demand. However, cautious monitoring of price volatility and supply constraints is essential to mitigate risks in this evolving market environment.
