In 2024, global gold demand reached its highest level on record, propelled by steady central bank acquisitions and heightened investment activity, according to a report by the World Gold Council in the first week of February 2025.
Gold Prices Hit 40 Record Highs in 2024 as Demand Continues to Soar
Overall annual gold demand, including over-the-counter (OTC) transactions, climbed to 4,974 tonnes, surpassing previous records. The report from the World Gold Council (WGC) also indicates that the total value of gold demand reached $382 billion, with prices hitting 40 record highs throughout the year.
Gold price on Feb. 7, 2025.
Central banks worldwide continued to be the main drivers of demand, purchasing over 1,000 tonnes for the third consecutive year, with buying activity intensifying in the fourth quarter. Gold investment experienced significant growth in 2024, with global investment demand rising by 25% year-over-year to 1,180 tonnes.
A revival in gold-backed exchange-traded funds (ETFs) also contributed to the growth, marked by net inflows for two consecutive quarters. Meanwhile, demand for bars and coins remained steady at 1,186 tonnes, matching the levels of 2023. The high price environment dampened jewelry consumption, which declined by 11% to 1,877 tonnes.
Source: WGC report.
This decline was most notable in China, where demand fell by 24% year-over-year. In contrast, India’s gold jewelry market remained relatively strong, recording only a 2% decrease despite the record-high prices. In the technology sector, gold demand had its strongest quarter since late 2021, reaching 84 tonnes in Q4.
An increase in gold utilization in artificial intelligence (AI) and electronics contributed to a 7% annual increase, bringing the total technology-related demand to 326 tonnes. At the same time, total gold supply increased by 1% year-over-year to a record 4,794 tonnes, supported by higher mine production and recycling. Looking ahead, the World Gold Council expects that central banks will continue to drive demand in 2025, with ETF investors potentially playing a more significant role if interest rates decline.
However, high prices and economic pressures may further limit jewelry demand. Geopolitical uncertainties and macroeconomic influences, such as central bank policies and elections, are expected to shape the trajectory of gold in the coming year. As of now, an ounce of .999 fine gold is trading at 2,873 per unit.
“In 2025, we anticipate that central banks will continue to lead the way, and gold ETF investors will join in, especially if we see lower, albeit volatile, interest rates,” commented Louise Street, the senior market analyst at the World Gold Council.
The WGC analyst added:
On the other hand, weakness in the jewelry sector is likely to persist as high gold prices and slow economic growth constrain consumer spending power. Geopolitical and macroeconomic uncertainties should be prominent themes this year, supporting the demand for gold as a store of wealth and hedge against risk.
