Global gold demand reached unprecedented heights in 2025, propelled by profound investor anxiety surrounding the economic policies of U.S. President Donald Trump. According to the World Gold Council’s (WGC) annual report released Thursday, demand for the precious metal surpassed 5,000 tonnes, with its total value skyrocketing to $555 billion—a staggering 45 percent annual increase.
The primary catalyst for this historic surge has been market uncertainty. WGC analyst Krishan Gopaul identified geopolitical apprehensions, particularly regarding the new Trump administration’s unpredictable actions, as a key driver. The year was defined by a sweeping tariff offensive against major U.S. trading partners like China, the European Union, and India, which destabilized long-established global free trade principles.
Compounding these concerns, President Trump’s public critiques of U.S. monetary policy ignited fears over the Federal Reserve’s independence and contributed to a weakening U.S. dollar. In response, investors and central banks worldwide aggressively turned to gold as a premier safe-haven asset. While the volume of central bank purchases saw a slight dip from the previous year, their total value climbed by 13 percent. Gold now constitutes over 20 percent of central bank reserves, a proportion not witnessed since the early 1990s.
Enthusiasm for gold-backed exchange-traded funds (ETFs) further amplified demand. Gopaul noted that these financial instruments have democratized access to gold, allowing investors to acquire it as easily as company stock. This collective movement culminated in gold prices nearing a historic $5,600 per troy ounce. Liam Fitzpatrick, head of metals and mining research at Deutsche Bank, attributed a fresh price surge this week to a combination of safe-haven demand, escalating geopolitical tensions, and a strategic shift by investors from traditional currencies and bonds into tangible hard assets.