World Gold Council says strong demand likely to persist in 2026

Andrew Naylor, Head of Middle East and Public Policy at the World Gold Council (WGC), said the foundation for continued strong demand remains in place in 2026, adding that ongoing policy uncertainty, robust central bank buying, and persistent risk management needs are expected to support the market beyond the recent price correction.

 

Central banks remain a pivotal force in shaping global gold demand, providing both stability and strategic direction for the market. In 2025, net official sector purchases reached 863 tonnes, underscoring the sustained commitment of central banks, particularly those in emerging markets, to gold as a core reserve asset, he added in an interview with Argaam.

 

Naylor further highlighted that initial estimates suggest mine production inched up to a new record of 3,672 tons, with total annual gold supply growing by 1%.

 

“There are no strong indications of significant expansion or decline in mine production for 2026. More broadly, gold mining is characterised by long project lead times, so any substantial changes in supply typically unfold over several years rather than in a single year,” he pointed out.

 

As of early 2025, approximately 216,265 tons of gold have been mined throughout history. Nearly all of this gold remains accessible in some form due to gold’s durability. While the WGC is committed to providing the most transparent and up-to-date market data, there is currently no precise percentage split available between tradable gold in the markets and bullion gold, Naylor underlined.

 

In 2025, global gold demand exceeded 5,000 tons for the first time, underpinned by several powerful drivers. Investment demand surged to 2,175 tons, as both gold ETFs and bar and coin investments reached new highs throughout the year. This was largely a response to heightened macroeconomic volatility and geopolitical uncertainty, with investors seeking gold’s safe-haven and diversification benefits, he added.

 

According to Naylor, emerging-market central banks led the activity of gold purchasing, motivated by the need to diversify reserves and manage risk in an uncertain global landscape.

 

While the volume of jewellery demand declined due to record-high gold prices, the value of global jewellery demand rose by 18% to a new peak of $172 billion. This demonstrates that, even at elevated price points, consumers remained committed to gold jewellery as a store of value and a symbol of status, Naylor stated.

 

He also noted that technology demand for gold remained stable, supported by ongoing growth in AI-related applications, which helped offset some softness in the broader consumer electronics sector.

 

Naylor further highlighted that central banks have been net buyers of gold for over 15 years, and the long-term trend shows little signs of abating.

 

“Our latest Central Bank Gold Survey (2025) found that 95% of the central banks surveyed expect global official gold reserves to increase over the next 12 months, the highest level of optimism recorded in our series,” Naylor explained.

 

He continued, “Looking ahead to 2026, we anticipate that central banks will continue to be a significant pillar of overall demand as reserve managers turn to gold as a reliable safe-haven and a vital tool for portfolio diversification in a persistently uncertain environment.”