Gold Demand Flat Despite AI Boom, Co-Packaged Optics Seen as Growth Driver
The World Gold Council (WGC) has released its 'AI Boom and Gold' report, which reveals that the surge in artificial-intelligence (AI) adoption has not significantly lifted gold demand. In fact, technology sector demand for gold remained flat at 323 tonnes in 2025, despite a modest 7% gain in 2024 to 326 tonnes.
The WGC attributes this trend to manufacturers' efforts to reduce or eliminate gold from some components due to high prices. However, the council sees potential growth from co-packaged optics (CPO), a semiconductor packaging method that uses gold in its optical and photonic parts.
CPO is gaining traction, with industry heavyweights like Nvidia investing heavily in its development. If widely adopted across hyperscale AI infrastructure, new demand for gold could become meaningful, particularly in the electronics manufacturing sector which accounts for about 80% of gold usage in industrial applications.