World’s demand for gold hit another record high in 2024

The world’s demand for gold hit another record high in 2024 amid robust central bank purchases and investment demand growth, the World Gold Council said in its annual report.

Total gold transactions came in at 4,974 tons last year, compared with 4,899 tons in 2023, including of over-the-counter (OTC) investments.

“In 2024, global gold demand surged to a new quarterly high and a record annual total bolstered by heightened geopolitical and economic uncertainties,” said Shaokai Fan, global head of central banks at the World Gold Council. 

Central banks’ appetite for gold remained “insatiable,” the Council said, and achieved a “significant milestone,” maintaining a consistently strong pace of gold buying with purchases surpassing 1,000 tons for the third consecutive year. The National Bank of Poland was the leading net purchaser among central banks, adding 90 tons to its reserves.

Turkey’s Central Bank, which raised its gold reserves by 75 tons, was the second biggest net purchaser of gold among central banks. The Reserve Bank of India was the third, with consistent purchases every month except December.

The annual overall investment in gold climbed 25% to hit a four-year high of 1,180 tons, largely fueled by gold exchange-traded funds. 

Similarly, demand for gold bars and coins remained firm, lifted by strong demand from China and India.

“Chinese investors faced a dearth of alternative assets in which to invest,” the report stated, highlighting that a mix of domestic economic uncertainty, persistent equity market volatility and record low government bond yields pushed domestic investors into gold.

In India, gold demand was lifted after its government reduced gold import duties from 15% to 6% in July, the World Gold Council noted.

Gold investment demand also grew across all ASEAN markets last year, with Singapore, Indonesia, Malaysia, and Thailand reporting double-digit increases year on year.

OTC investments remained stable last year, and the demand is reflective of high-net-worth individuals looking to hedge geopolitical and economic risks, the council said. OTC transactions take place directly between two parties, unlike trading conducted by an exchange. 

Demand in the jewelry sector, which has been pressured by higher prices, was subdued, with consumption falling 11% year on year — the only outlier as other sectors gained, according to the report.

Demand for gold jewelry is likely to stay weak this year as consumer spending power remains dampened by higher prices and soft economic growth, the council’s analysts said. 

Bullion prices have been on a tear, with prices notching 40 record highs last year and going on to hit fresh highs this year. On Wednesday, gold futures traded on the New York Mercantile Exchange rose to $2,875.8 per ounce, data from FactSet showed.

“In 2025, we expect central banks to remain in the driving seat and gold ETF investors to join the fray, especially if we see lower, albeit volatile interest rates,” said World Gold Council senior markets analyst, Louise Street.

Overall investment demand is likely to remain healthy this year, with expected lower interest rates to reduce the opportunity costs of holding gold, the report said.