Gold surged to a new all-time high of $2,867.23 per ounce on Wednesday, climbing $52.37 in early trading.
Threatened US trade tariffs, political uncertainty and volatility across world stock markets have driven demand for the yellow metal, which hit record-breaking levels in 2024, according to the World Gold Council.
Total gold transactions reached 4,974 tons, surpassing 2023 levels. Central banks were key drivers, purchasing over 1,000 tons for the third consecutive year. Poland’s central bank led with 90 tons added, followed by Turkey (75 tons) and India.
Investor appetite also grew, with overall investment in gold rising 25% to a four-year high. Strong demand from China and India fuelled a surge in gold bars and coins.
Meanwhile, jewellery demand fell 11% year-on-year, as high prices dampened consumer spending.
Looking ahead, the World Gold Council expects central banks to remain key buyers, with lower interest rates likely to boost investment demand.