Global Gold Demand in 2024
In 2024, global gold demand, including over-the-counter (OTC) trading, reached a record high of 4,974.5 metric tonnes, marking a 1% increase primarily driven by increased investment, as reported by the World Gold Council (WGC).
Spot Gold Prices
- Spot gold prices surged by 27% last year, the largest increase since 2010.
- The rise was attributed to investors using gold as a hedge against global risks and the US Federal Reserve's interest rate cuts.
- Prices hit an all-time high after China imposed tariffs on the US in retaliation to trade levies from President Donald Trump.
Central Banks' Gold Purchases
- Central banks, a significant source of gold demand, purchased over 1,000 tonnes for the third consecutive year.
- The National Bank of Poland was the largest buyer, adding 90 tonnes to its reserves.
- In Q4 2024, central banks increased their purchases by 54% year-on-year to 333 tonnes.
Investment Demand
- Investment demand for gold rose by 25% to 1,180 tonnes, reaching a four-year high.
- Outflows from physically-backed gold exchange-traded funds (ETFs) stopped for the first time in four years.
- Investment demand for bars increased by 10%, while coin buying fell by 31%.
Outlook for 2025
The WGC expects central banks to continue driving demand, with gold ETF investors likely to increase their involvement. Geopolitical and macroeconomic uncertainty is expected to maintain gold's role as a store of wealth and a hedge against risks.
Jewellery Consumption and Mine Production
- Gold jewellery consumption, the largest category of physical demand, declined by 11% in 2024.
- Mine production remained steady, while recycling rose by 15%.
- The WGC anticipates continued pressure on jewellery demand and an increase in recycling due to high prices.
