Gold demand reached record highs in 2024, driven by central bank buying and investment from emerging markets.
Our new #GoldDemandTrends report is out now. Get the details on the record-setting year that was 2024 from Louise Street and Johan Palmberg of our Research Team. Watch the full break down on YouTube: https://t.co/2ZagQwpulg pic.twitter.com/yp3gA18SEU
— World Gold Council (@GOLDCOUNCIL) February 5, 2025
The World Gold Council reported that total demand hit 4,974 tonnes, with the value of global demand surging to $382 billion, a 26 percent increase in the gold price. Central banks accumulated over 1,000 tonnes of gold for the third year in a row.
Gold demand hit a new record in 2024, with central banks and
investors driving market strength. Get the data on gold last year in
our Q4 Gold Demand Trends report, out now.— World Gold Council (@GOLDCOUNCIL) February 5, 2025
Louise Street, an analyst at the World Gold Council, said, “Gold’s performance in times of crisis and its lack of default risk are both high up on central banks’ list of reasons they hold gold.”
The National Bank of Poland was the biggest buyer, adding 90 tonnes to its reserves. Turkey and India’s central banks bought 75 and 73 tonnes respectively. The demand from central banks was largely from non-western and developing economies.
Gold price crosses Rs 85000-mark for 1st-time; what's fueling the demand?https://t.co/jarQxD8rUF
— ET NOW (@ETNOWlive) February 5, 2025
Private investors also contributed to rising gold demand. Global investment reached a four-year high, mainly driven by non-western investors.
Gold buoyed by central bank buying
Central banks added 1,045t to global #gold reserves in 2024, the third consecutive year that demand topped 1,000t. This continued strength of demand exceeded even our already-lofty expectations. Read more here: https://t.co/F7ABAzE9pU pic.twitter.com/uwnrGLwNgL
— Krishan Gopaul (@KrishanGopaul) February 5, 2025
However, price-sensitive investors in the U.S. and Europe saw declines as many took profits from previous years’ rallies. Geopolitical and economic uncertainty continues to drive investors to safe-haven assets. On Monday, gold hit an all-time high above $2,280 per ounce, spurred by uncertainty around Donald Trump’s tariff plans.
Street commented, “Geopolitical uncertainty remains at the forefront of investors’ concerns, but what we’re seeing is it moving away from the armed conflict side of geopolitics towards more trade-related conflicts.”
Gold hit record highs for the fifth day in a row on Wednesday, surpassing $2,877 per ounce. Futures also climbed above $2,900. Joe Cavatoni, market strategist at the World Gold Council, said central bank purchases were driven by “concerns about ongoing inflation, geopolitical tensions, and needs to add diversification to their portfolios.”
The Federal Reserve’s rate cuts, which started last year, led to global inflows into physical-backed gold ETFs.
A lower interest rate environment is good for gold since it doesn’t have to compete with yield-bearing assets. Gold is up about 8% year to date after gaining over 27% in 2024, beating the S&P 500’s 23.1% gain. Goldman Sachs analysts noted strong demand amid escalating tariffs and maintained a $3,000 per ounce price forecast for Q2 2026.