Gold prices hit a new high 53 times: global gold demand surpasses 5,000 tons, and central banks continue their gold-buying frenzy

In 2025, the global total demand for gold surpassed the 5,000-ton mark for the first time, reaching 5,002 tons, setting a new historical high. At the same time, international gold prices hit a total of 53 new all-time highs over the past year.

As a safe-haven asset and a store of value, gold’s appeal has become increasingly prominent in uncertain economic environments. Gold ETFs saw a net increase of 801 tons throughout the year, becoming the main driver of demand growth.

01 Market Milestones

In 2025, the gold market achieved a historic breakthrough, with global gold demand reaching 5,002 tons, setting a new record.

Gold prices in 2025 experienced a leap. The annual average gold price from the London Bullion Market Association soared from $2,386.2 per ounce in the previous year to $3,431.5 per ounce.

The total global demand for gold reached $555 billion, a year-on-year increase of 45%.

Investment demand became the main driving force, with gold investment demand skyrocketing from 1,185.4 tons in 2024 to 2,175.3 tons, an increase of 84%.

02 New Investment Boom

The gold investment sector in 2025 showed a diversified explosion. Global demand for gold bars and coins reached 1,374 tons, a new high in 12 years.

The growth in physical gold investment was mainly concentrated in the Chinese and Indian markets, which together contributed over 50% of the increase in this category.

Gold ETFs shifted from slight net outflows in 2024 to significant net inflows. In 2025, global gold ETF net inflows reached 801 tons, becoming one of the main drivers of investment demand growth.

In the fourth quarter alone, inflows into Chinese gold ETFs reached 51 billion RMB, setting a record for the strongest quarter ever.

03 Role of Central Banks

In 2025, central banks worldwide continued to actively increase gold reserves, with official institutions net purchasing 863 tons of gold. Although still at historic highs, the pace of central bank gold purchases has slowed compared to the past three years.

As one of the largest gold-consuming countries, China’s central bank has increased its gold reserves for 14 consecutive months. By the end of December 2025, China’s gold reserves reached 74.15 million ounces.

Central bank gold purchases have become a key factor supporting long-term demand for gold. Most central banks buy gold mainly to diversify foreign exchange reserves and reduce dependence on the US dollar.

04 Price Trends and Outlook

Entering 2026, gold prices are rising even more rapidly. On January 28, international spot gold prices briefly broke through $5,500 per ounce, up about 20% from the beginning of the year. From $4,000 to $5,500, international gold prices took less than three months.

Several international investment banks are optimistic about the future of gold. Goldman Sachs raised its forecast for gold prices at the end of 2026 from $4,900 per ounce to $5,400 per ounce.

Morgan Stanley, under a bullish scenario, set a target price of $5,700 per ounce for gold.

05 Correlation with the Cryptocurrency Market

While the gold market performed strongly, the cryptocurrency sector also showed similar development trends. As an important participant in the crypto asset market, the Gate platform Token price also reflects the overall market demand for alternative assets.

As of January 30, 2026, the price of GateToken (GT) was $9.3469 USD. Over the past month, GT’s price showed narrow fluctuations, with a high of $10.7908 in January.

Similar to gold, cryptocurrencies are also influenced by the global macroeconomic environment, monetary policy expectations, and geopolitical factors. Investors often consider cryptocurrencies alongside gold when seeking alternatives to traditional assets.

06 Convergence of Gold and Crypto Assets

Gold and crypto assets both serve as diversification tools in investment portfolios. They tend to have low correlation with traditional assets like stocks and bonds, providing protection during market turbulence.

Although there are fundamental differences in physical form and technological basis, both represent alternatives or supplements to the traditional financial system.

Platforms like Gate are building bridges connecting traditional assets with digital assets, offering investors more comprehensive asset allocation options.

Looking ahead to 2026, the World Gold Council believes that economic and geopolitical uncertainties show little sign of easing, and gold ETFs will continue to see strong inflows.

Future Outlook

As central banks worldwide continue to aggressively purchase gold, analysts are raising their gold price forecasts: Goldman Sachs is bullishly projecting $5,400, and Morgan Stanley sees a high of $5,700 under optimistic scenarios.

The new record in gold prices is not a mere market fluctuation but a collective choice by global investors seeking a value anchor amid economic uncertainty.

In the coming months, the global gold market will face multiple challenges, including inflation pressures, shifts in monetary policy, and geopolitical risks. Behind every gram of gold lies people’s desire and effort to combat uncertainty.