Gold demand to remain strong as investors reassess risk, WGC says

Subscribe to enjoy similar stories. Global demand for gold is expected to remain strong this year, driven by lower interest rates, uncertainty in bond markets and persistent geopolitical risks, the World Gold Council said after bullion crossed the $5,000 mark for the first time. “Gold’s appeal as an all-weather hedge relative to fixed income should continue to attract material investor demand into 2026, and possibly beyond," the trade group said Thursday in its quarterly report.

Investors across major economies are increasingly concerned about stressed global economic conditions and fiat currencies. That is pushing them to rethink risk, diversification, and wealth preservation. As a result, gold is gaining renewed attention as a hedge and is being more seriously considered and allocated within portfolios.

“Investors around major nations are having questions and concerns around their economic conditions," said Joseph Cavatoni, senior market strategist at the WGC. “I think that’s what’s helping all the other factors that we know…political tensions, geopolitical tensions, trade relations." The precious metal has smashed records over the past year, bolstered by central-bank buying and strong inflows into exchange-traded funds as investors shy away from sovereign bonds and currencies in favor of hard assets. Gold futures in New York climbed above $5,200 a troy ounce on Wednesday, touching an intraday high of $5,306 an ounce after the U.S.

dollar fell to a nearly four-year low, making the metal more affordable for holders of other currencies. Last year, gold gained nearly 65%—its strongest annual performance since 1979. The rally has prompted major banks to lift their price forecasts.