Released December 01, 2025 | NEW DELHI
en
Written by Sharun Anthony for Industrial Info Resources
According to Bullion data, gold prices surged more than 50% over the past year, with spot gold peaking at US$4,374.50 on October 20. While the recent pullback in prices has been a good entry point for investors, spot gold was trading at US$4,064.50 per ounce as of Friday, November 23. Key drivers sustaining this demand include anticipation of the U.S. Federal Reserve interest rate cut, a softer dollar and safe haven demand from both individual and institutional investors amid economic slowdown concerns globally.
Slowing growth and weak economic data in the U.S. have fueled expectations of monetary easing. At the same time, a weaker U.S. dollar has made gold more affordable for non-dollar investors, reinforcing demand. Furthermore, geopolitical concerns, fiscal deficits and trade tensions have heightened fears of a worldwide slowdown, boosting gold's appeal as a hedge. With major central banks slashing interest rates this year, gold has become increasingly attractive to investors compared to traditional return-bearing instruments.
Central banks have added to the momentum, with significant buying this year driven by gold's safe haven appeal. World Gold Council data show that central banks purchased 220 tonnes of gold in Q3 2025 - a 28% increase from the previous quarter - bringing year-to-date accumulations to 634 tonnes. While demand from technology and jewelry sectors has dipped, gold-backed exchange traded funds (ETFs) recorded inflows of 222 tonnes in the third quarter, and physical investment (bars and coins) stayed strong at 316 tonnes for the fourth consecutive quarter.
On the supply side, global mine production rose 2% in Q3 2025, while recycled gold output was up by 6% compared with the same period last year. However, these marginal gains have not kept pace with the current demand, keeping gold prices elevated.
Industrial Info is tracking around 2,600 projects worth a massive spend of US$233 billion that are geared towards gold ore mining and processing activities globally.
With an aggregate investment of over US$30 billion, Seabridge Gold Incorporated (Toronto, Ontario), Polyus PAO (Moscow, Russia), Agnico Eagle Mines Limited (Toronto) and NovaGold Resources Incorporated (Vancouver, British Columbia) are the leading players in the market. They collectively hold a total market share of more than 13%.
About 57% of the investment is aimed at grassroot projects, while 12% of the spend is geared towards unit additions and 10% is aimed at plant expansions. Of the overall spend, 81% is in the planning phase, 10% in the engineering stages and the remaining 10% under construction. Also, most of these projects (more than 1,300) are show kickoff slippage of about two years.
At length, strong demand and steady supply suggest gold prices will remain elevated in the near term. However, as global investors continue to view gold as a fear gauge, the interplay of monetary policy, geopolitical risks and investor sentiment is likely to shape gold's trajectory.
Key Takeaways
About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
Summary
Gold is likely to record its strongest annual gain since 1979 despite a recent dip in prices. Spot gold peaked at US$4,374.50 per ounce on October 20, but has since pulled back.Gold is Good
From ornaments to investments, gold has graced both treasures and trust over time and 2025 marks another stellar year for this precious metal. With record highs, steep swings and spot prices hovering around US$4,000 per ounce, gold is likely to record its strongest annual gain since 1979 despite a recent dip in prices.According to Bullion data, gold prices surged more than 50% over the past year, with spot gold peaking at US$4,374.50 on October 20. While the recent pullback in prices has been a good entry point for investors, spot gold was trading at US$4,064.50 per ounce as of Friday, November 23. Key drivers sustaining this demand include anticipation of the U.S. Federal Reserve interest rate cut, a softer dollar and safe haven demand from both individual and institutional investors amid economic slowdown concerns globally.
Slowing growth and weak economic data in the U.S. have fueled expectations of monetary easing. At the same time, a weaker U.S. dollar has made gold more affordable for non-dollar investors, reinforcing demand. Furthermore, geopolitical concerns, fiscal deficits and trade tensions have heightened fears of a worldwide slowdown, boosting gold's appeal as a hedge. With major central banks slashing interest rates this year, gold has become increasingly attractive to investors compared to traditional return-bearing instruments.
Central banks have added to the momentum, with significant buying this year driven by gold's safe haven appeal. World Gold Council data show that central banks purchased 220 tonnes of gold in Q3 2025 - a 28% increase from the previous quarter - bringing year-to-date accumulations to 634 tonnes. While demand from technology and jewelry sectors has dipped, gold-backed exchange traded funds (ETFs) recorded inflows of 222 tonnes in the third quarter, and physical investment (bars and coins) stayed strong at 316 tonnes for the fourth consecutive quarter.
On the supply side, global mine production rose 2% in Q3 2025, while recycled gold output was up by 6% compared with the same period last year. However, these marginal gains have not kept pace with the current demand, keeping gold prices elevated.
Industrial Info is tracking around 2,600 projects worth a massive spend of US$233 billion that are geared towards gold ore mining and processing activities globally.
Canada Leads in Spending
With a total spend pipeline of over US$78 billion across 383 projects, Canada drives the majority of spending. It is followed by the U.S. with a spend of around US$33 billion across 190 projects and Australia with over US$12 billion across 342 projects. An investment of around US$12 billion is also being tracked out of Russia. Other states with substantial spending include China, Peru, Cote d'Ivoire, Papua New Guinea and Chile.With an aggregate investment of over US$30 billion, Seabridge Gold Incorporated (Toronto, Ontario), Polyus PAO (Moscow, Russia), Agnico Eagle Mines Limited (Toronto) and NovaGold Resources Incorporated (Vancouver, British Columbia) are the leading players in the market. They collectively hold a total market share of more than 13%.
About 57% of the investment is aimed at grassroot projects, while 12% of the spend is geared towards unit additions and 10% is aimed at plant expansions. Of the overall spend, 81% is in the planning phase, 10% in the engineering stages and the remaining 10% under construction. Also, most of these projects (more than 1,300) are show kickoff slippage of about two years.
At length, strong demand and steady supply suggest gold prices will remain elevated in the near term. However, as global investors continue to view gold as a fear gauge, the interplay of monetary policy, geopolitical risks and investor sentiment is likely to shape gold's trajectory.
Key Takeaways
- Industrial Info tracks some 2,600 gold-related projects worth US$233 billion.
- Canada drives the majority of spending.
- Gold is likely to record its strongest annual gain since 1979.
About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
