Tuba Ongun
February 05, 2025•Update: February 05, 2025
ANKARA
Global gold demand hit a record high of 4,974 tons in 2024, driven by strong central bank purchases and growing investment interest, according to the World Gold Council’s latest report released on Wednesday.
This surge, coupled with record gold prices, resulted in the total value of demand soaring to an all-time high of $382 billion, the Gold Demand Trends report said.
Central banks played a pivotal role, purchasing more than 1,000 tons of gold for the third consecutive year. In 2024, central banks purchases totaled at 1,045 tons, with the fourth quarter's figure alone accounting for 333 tons.
Investment demand also posted a remarkable year-on-year growth of 25% to 1,180 tons, the highest level in four years led by a resurgence in gold exchange-traded funds (ETFs).
Meanwhile, demand for gold bars and coins remained stable at 1,186 tons, reflecting sustained interest among retail investors.
However, the jewelry sector faced challenges, with annual demand declining by 11% to 1,877 tons as record-high gold prices dampened consumer interest, particularly in China, where demand fell 24% at an annualized pace. Indian jewelry demand showed resilience, recording only a 2% decline despite the high-price environment.
Demand in the technology sector grew by 7% from the prior year to 326 tons, supported by increased use of gold in artificial intelligence (AI) applications and electronics.
Total gold supply rose by 1% compared to 2023, reaching a record 4,794 tons, thanks to increased mine production and recycling activities.
Louise Street, senior markets analyst at the World Gold Council, noted that 2024 was a landmark year for gold, characterized by record-breaking prices and fluctuating demand patterns.
Central banks maintained their dominance in the market, particularly in the first and the fourth quarters, while a revival in Western investor interest fueled significant ETF inflows in the latter half of the year.
Looking ahead, Street stressed that central banks will continue to play a leading role in driving gold demand in 2025 and added: "On the other hand, jewelry weakness will likely continue as high gold prices and soft economic growth squeeze consumer spending power. Geopolitical and macroeconomic uncertainty should be prevalent themes this year, supporting demand for gold as a store of wealth and hedge against risk."
