The World Gold Council’s Q4 and Full Year 2024 Gold Demand Trends report reveals that total annual gold demand hit a new, record high of 4,974 tonnes, driven by strong, sustained central bank buying and growth in investment demand. 

 

The demand in 2023 was 4,945.9 tonnes.

 

The combination of record high gold prices, and volumes resulted in the highest ever total value of demand at $382 billion.

 

Central banks continued to buy gold at pace in 2024, with purchases exceeding 1,000 tonnes for the third year in a row. Buying ramped up significantly in Q4, reaching 333 tonnes and bringing the annual total for central banks to 1,045t.

 

Global investment demand increased 25% year-on-year to 1,180 tonnes – a four-year high – driven by a revival in gold ETF demand in the second half of 2024. Global gold ETFs added 19 tonnes in Q4 2024, marking two consecutive quarters of inflows for the asset class. Bar and coin demand stayed largely in line with 2023 volumes at 1,186 tonnes in 2024.

 

Unsurprisingly, high prices dampened demand in the jewellery sector, with annual consumption decreasing by 11% to 1,877 tonnes. The decline was driven largely by weakness in China (down 24% year-on-year), though Indian demand remained resilient, dropping just 2% in 2024, in a record high price environment.  

 

The technology sector saw its strongest quarter since Q4 2021, with demand reaching 84 tonnes. A modest rise in gold volumes used in artificial intelligence (AI) and electronics contributed to a 7% year-on-year increase, netting at 326 tonnes.

 

Total gold supply increased 1% year-on-year, reaching a new record high of 4,794 tonnes. Growth in both mine production and recycling contributed to the increase in total gold supply.

 

The council expects central banks to stay in the driving seat in 2025 and gold ETF investors to join the fray. Jewellery demand will remain under pressure and may see further growth in recycling, it said.

 

Mine supply is expected to remain robust, it added.   -TradeArabia News Service