Global gold demand reached a record high in Q4 2024, reaching 4,974 tonnes, according to the latest report from the World Gold Council. This represents a 1% year-on-year increase driven by robust buying activity from central banks and a resurgence in investment demand.
World Gold Council notes that growth in both mine production and recycling contributed to the increase in total supply of gold.
The average Q4 price of US$2,663/oz was also a record and yielded an annual average price of US$2,386/oz (+23%). Combination of record gold prices and volumes produced a Q4 value of US$111bn. This took 2024 over the line to reach the highest-ever annual value of US$382bn.
Central banks continued their strong appetite for gold, exceeding 1,000 tonnes of net purchases for the third consecutive year. This buying spree accelerated in the fourth quarter of 2024 with central banks acquiring 333 tonnes of gold.
Annual investment reached a four-year high of 1,180 tonnes (+25%).
Investment demand also rebounded significantly in 2024, reaching a four-year high of 1,180 tonnes. Gold ETFs played a significant role with 2024 marking the first year since 2020 where holdings remained relatively stable following three years of heavy outflows.
Full-year bar and coin demand was in line with 2023 at 1,186t.
While overall gold jewelry demand declined by 11% to 1,877 tonnes due to affordability constraints, spending on jewelry increased by 9% to US$144 billion.
Technology demand also contributed to the growth in overall gold demand, increasing by 7% to 21 tonnes in 2024, driven by the continued growth in artificial intelligence applications.
The World Gold Council expects central bank buying to remain robust in 2025 although it acknowledges that forecasting central bank demand is inherently challenging due to its dependence on policy decisions and geopolitical factors.
“Central Banks having positively surprised for three years in a row, there’s more evidence that supports the idea that central banks can repeat again their 1,000t-plus net buying in 2025,” reads the report.
The report highlights that geopolitical tensions and economic uncertainty could further support central bank demand for gold as a safe-haven asset.
