Global gold demand soared to an all-time high in 2024, driven by aggressive central bank purchases and a surge in investment interest, according to the World Gold Council’s annual report.
Key Figures
- Nearly 5,000 tonnes of gold were traded last year, surpassing the 4,899 tonnes recorded in 2023, including over-the-counter (OTC) investments.
- Central banks continued their buying spree, surpassing 1,000 tonnes of purchases for the third consecutive year.
- The National Bank of Poland emerged as the top buyer, adding 90 tonnes to its reserves, followed by Turkey (75 tonnes) and India, which made steady purchases throughout the year.
What’s Next?
Gold prices shattered 40 all-time highs last year and continue to rise in 2025. Futures on the New York Mercantile Exchange (NYMEX) climbed to $2,875.8 per ounce this week, according to FactSet.
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With rate cuts expected, the opportunity cost of holding gold is likely to decrease, keeping investment demand stable.
Investment Surge
- Total gold investment jumped 25% to a four-year high of 1,180 tonnes, primarily fueled by ETFs.
- Demand for gold bars and coins remained steady, with robust purchases in China and India.
- India’s gold demand spiked following a government reduction in import duties from 15% to 6% in July.
- Across ASEAN nations, including Singapore, Indonesia, Malaysia, and Thailand, investment demand saw double-digit growth.
- Wealthy investors continued to hedge risks through OTC gold investments, which operate outside traditional exchanges.
Jewelry Market Struggles
Despite the bullish investment climate, gold jewelry demand fell 11% year-on-year, making it the only segment to decline. High gold prices and sluggish economic growth are expected to keep demand weak in 2025, according to analysts.
While central banks and investors drive record-breaking gold purchases, consumer markets remain under pressure, setting the stage for another year of market shifts in 2025.
