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Global gold demand rose by 1% to a record 4,974.5 metric tons in 2024, driven by strong investment inflows and central bank purchases, according to the World Gold Council (WGC). Central banks bought over 1,000 tons of gold for the third consecutive year, with Poland leading the acquisitions. Investment demand surged 25%, fueled by reduced ETF outflows, while bar demand grew 10%. However, jewellery consumption declined 11% due to high prices. Gold recycling rose 15%, reflecting profit-taking. The WGC predicts continued strong investment interest amid economic uncertainty, while jewellery demand may stay weak. Central bank buying remains a key factor influencing gold prices in 2025.

Key Highlights

* Gold demand rose 1% to a record 4,974.5 tons in 2024.

* Central banks bought over 1,000 tons, with Poland leading.

* Investment demand surged 25%, driven by ETF stability.

* Jewellery demand fell 11% due to high prices.

* Gold recycling increased 15% as investors capitalized on prices.

Gold prices remained strong in 2024, with global demand reaching a record 4,974.5 metric tons, reflecting a 1% rise from the previous year. The rally was fueled by increased investment inflows and heightened central bank buying. Investors turned to gold as a safe-haven asset amid economic uncertainty, supporting higher price levels throughout the year.

A major driver of gold prices was the aggressive purchasing by central banks, which accumulated over 1,000 tons of the metal for the third consecutive year. The National Bank of Poland led the buying spree with 90 tons added to its reserves. In the fourth quarter, central bank purchases surged by 54% year-on-year, coinciding with market volatility following Donald Trump’s U.S. election victory.

Investment demand surged 25% to a four-year high of 1,180 tons, mainly due to a stabilization in gold-backed ETFs, which had seen continuous outflows in previous years. Bar investments rose 10%, reflecting strong investor confidence, while coin demand fell by 31%. On the other hand, jewellery consumption saw an 11% decline, as high gold prices discouraged consumer purchases. Additionally, gold recycling increased by 15%, driven by profit-taking as prices reached elevated levels.

Looking ahead, the World Gold Council expects central bank buying to remain robust in 2025, supporting gold prices. However, jewellery demand may continue to struggle due to elevated price levels, while recycling activity is likely to rise further.

Finally

Gold demand remained strong in 2024, driven by investment and central bank buying. Prices may stay firm in 2025, with economic uncertainty sustaining investor interest in the precious metal.

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