Money and business

Urgent – Trump’s policies push global demand for gold to an unprecedented level


Global demand for gold reached an unprecedented level in 2025 on an annual basis, after investors and central banks rushed to buy this type of safe asset to protect themselves from the policies of the US President Donald Trump, according to the annual report issued by the World Gold Council on Thursday.
Purchases of Gold in 2025 will reach record numbers in terms of volume and value, as demand exceeded 5,000 tons, equivalent to $555 billion, an increase of 45% year-on-year.
Krishan Gopaul, an expert at the World Gold Council, the global organization that represents the world’s leading gold mining companies, said that "Uncertainty" It is the key word to explain the reasons behind these results.
He pointed out that "On a geopolitical level, it is clear that the actions of the new Trump administration have raised concerns"

Change in American economic policy

This comes as the year 2025 witnessed a noticeable change in American economic policy, and Washington imposed customs tariffs on its trading partners, especially China, the European Union, and India.
At the same time, Trump The monetary policy of the Federal Reserve, which raised concerns about the decline in the institution’s independence and contributed to the decline in the value of the dollar, and as a result, central banks continued to significantly increase their gold reserves.
Despite a slight decrease in the volume of purchases compared to the previous year, the demand of these monetary institutions for gold increased by 13% in value between 2024 and 2025.

Gold currently constitutes more than 20% of central banks’ reserves (compared to 10 in the second decade of the current millennium), a ratio that has not been reached since the beginning of the 1990s, according to the World Gold Council.

Interest in investment funds

On the other hand, the demand for gold is affected by an unprecedented rise in interest in investment funds linked to its price, such as exchange-traded funds.
This correlation has doubled in recent years, and has made gold accessible to many investors, making purchasing it as easy as purchasing company shares, according to Gopal.
He pointed out that the factors that contributed to the increase in demand On gold in 2025, it will remain in place in 2026.
The price of an ounce of 2026 gold achieved an amazing performance at the beginning of 2026, reaching a new record high on Wednesday, above $5,300.

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