“In 2024, international gold demand surged to a brand new quarterly excessive and a file annual whole bolstered by heightened geopolitical and financial uncertainties,” stated Shaokai Fan, international head of central banks on the World Gold Council.
Shannon Stapleton | Reuters
The world’s demand for gold hit one other file excessive in 2024 amid sturdy central financial institution purchases and funding demand progress, the World Gold Council stated in its annual report.
Complete gold transactions got here in at 4,974 tons final yr, in contrast with 4,899 tons in 2023, together with of over-the-counter (OTC) investments.
“In 2024, international gold demand surged to a brand new quarterly excessive and a file annual whole bolstered by heightened geopolitical and financial uncertainties,” stated Shaokai Fan, international head of central banks on the World Gold Council.
Central banks’ urge for food for gold remained “insatiable,” the Council stated, and achieved a “important milestone,” sustaining a constantly sturdy tempo of gold shopping for with purchases surpassing 1,000 tons for the third consecutive yr. The Nationwide Financial institution of Poland was the main web purchaser amongst central banks, including 90 tons to its reserves.
Turkey’s Central Financial institution, which raised its gold reserves by 75 tons, was the second greatest web purchaser of gold amongst central banks. The Reserve Financial institution of India was the third, with constant purchases each month besides December.
General investments
The annual general funding in gold climbed 25% to hit a four-year excessive of 1,180 tons, largely fueled by gold exchange-traded funds.
Equally, demand for gold bars and cash remained agency, lifted by sturdy demand from China and India.
“Chinese language buyers confronted a dearth of other belongings wherein to speculate,” the report said, highlighting that a mixture of home financial uncertainty, persistent fairness market volatility and file low authorities bond yields pushed home buyers into gold.
In India, gold demand was lifted after its authorities lowered gold import duties from 15% to six% in July, the World Gold Council famous.
Gold funding demand additionally grew throughout all ASEAN markets final yr, with Singapore, Indonesia, Malaysia, and Thailand reporting double-digit will increase yr on yr.
OTC investments remained steady final yr, and the demand is reflective of high-net-worth people seeking to hedge geopolitical and financial dangers, the council stated. OTC transactions happen immediately between two events, in contrast to buying and selling performed by an trade.
Jewellery demand nonetheless weak
Demand within the jewellery sector, which has been pressured by increased costs, was subdued, with consumption falling 11% yr on yr — the one outlier as different sectors gained, in accordance with the report.
Demand for gold jewellery is more likely to keep weak this yr as shopper spending energy stays dampened by increased costs and comfortable financial progress, the council’s analysts stated.
Bullion costs have been on a tear, with costs notching 40 file highs final yr and occurring to hit contemporary highs this yr. On Wednesday, gold futures traded on the New York Mercantile Alternate rose to $2,875.8 per ounce, knowledge from FactSet confirmed.
“In 2025, we count on central banks to stay within the driving seat and gold ETF buyers to affix the fray, particularly if we see decrease, albeit risky rates of interest,” stated World Gold Council senior markets analyst, Louise Road.
General funding demand is more likely to stay wholesome this yr, with anticipated decrease rates of interest to scale back the chance prices of holding gold, the report stated.