Trump policy uncertainty pushes gold to fresh highs: industry data

LONDON: Gold demand surged to a record high in 2025, as investors and central banks flocked to the safe-haven asset to guard against US President Donald Trump’s unpredictable policies, industry data showed Thursday.

Purchases hit all-time highs in both volume and value last year, with demand exceeding 5,000 tonnes and value reaching $555 billion — a 45 percent increase year on year, the World Gold Council said.

“Uncertainty” has been the key driver of gold’s strong performance, said WGC analyst Krishan Gopaul.

“On a geopolitical front, there were obviously concerns about the actions of the new Trump administration,” he said.

The year was marked by Trump’s tariff onslaught against major trading partners, including China, the European Union and India.

Adding to that, Trump’s criticism of US monetary policy has fuelled concerns about the Federal Reserve’s independence and contributed to a weakening dollar.

Those fears have led central banks to significantly increase their gold reserves.

Although central bank gold purchases fell slightly in volume from the previous year, their total value increased by 13 percent between 2024 and 2025.

Gold now makes up more than 20 percent of central bank reserves, a level not seen since the early 1990s, the WGC noted.

Much of that increase has come at the expense of the weakening US dollar.

Demand also got a boost from enthusiasm for exchange-traded funds (ETFs) linked to the gold price.

“Gold ETFs have made gold more accessible to many investors,” by making it as easy to buy as a company stock, Gopaul said.

He added that the forces driving gold’s rally in 2025 are likely to persist in 2026.

Gold began 2026 by reaching fresh highs, trading above $5,300 an ounce on Wednesday.