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Global gold demand reaches new highs as prices skyrocket in 2024.

According to the World Gold Council‘s Q4 and Full Year 2024 Gold Demand Trends report, overall annual gold demand (including OTC) reached a new all-time high of 4,974t, owing to robust, sustained central bank purchases and increased investment demand. The combination of record high gold prices and volumes resulted in the greatest ever overall value of demand, $382 billion.

Central banks continued to buy gold at a rapid pace in 2024, purchasing more than 1,000t for the third consecutive year. Buying increased sharply in Q4, totaling 333t and increasing the annual total for central banks to 1,045t.

Global investment demand surged by 25% year on year to 1,180t, a four-year high, led by a rebound in gold ETF demand in the second half of 2024. In Q4 2024, global gold ETFs added 19t, marking the asset class’s second consecutive quarter of inflows. In 2024, bar and coin demand remained relatively consistent with 2023 numbers, totaling 1,186t.

Unsurprisingly, high costs hampered demand in the jewellery business, reducing yearly consumption by 11% to 1,877t. The decline was primarily caused by weakening in China (down 24% year on year), but Indian consumption remained resilient, down only 2% in 2024 in a record high pricing environment.

The technology sector experienced its greatest quarter since Q4 2021, with demand hitting 84t. A slight increase in gold volumes used in artificial intelligence (AI) and electronics contributed to a 7% year-on-year growth, totaling 326 tonnes.

Total gold supply climbed by 1% year on year, setting a new record high of 4,794t. Growth in mine production and recycling both contributed to an increase in total gold supply.

Louise Street, Senior Market Analyst at the World Gold Council, stated:

“Gold once again dominated headlines in 2024, with prices reaching 40 new highs last year. However, the demand trajectory for 2024 was far from linear, with central banks showing robust demand in the first quarter before decreasing through the middle of the year and finishing strong in the fourth quarter. Similarly, the second half of the year saw a significant resurgence from Western investors, which, when combined with extraordinary increase in Asian flows, pushed global gold ETF flows into positive territory in the third and fourth quarters. This was fueled by the commencement of rate-cutting cycles by several central banks, as well as increased global uncertainty, such as the US presidential election and growing Middle East tensions.

In 2025, we predict central banks to stay in charge, with gold ETF investors joining the game, particularly if interest rates fall, albeit in volatile fashion. On the other hand, jewellery downturn is likely to persist as high gold prices and slow economic development limit consumer spending power. Geopolitical and macroeconomic instability are expected to remain major themes this year, driving demand for gold as a wealth store and risk hedge.”

The Gold Demand Trends Q4 and Full Year 2024 report, which contains extensive data from Metals Focus, can be viewed here.

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