Global Gold Demand Reaches Unprecedented Level in 2024
In 2024, global gold demand reached an all-time high, driven by an uncertain geopolitical climate, according to the World Gold Council (WGC) report. Despite record gold prices, overall demand increased by 1% compared to the previous year, totaling 4,553.7 tonnes. Central banks' gold purchases contributed significantly to this trend, with an acquisition of 1,045 tonnes, marking the third consecutive year with purchases exceeding 1,000 tonnes.
Gold investment experienced a significant 25% growth in 2024, representing the strongest increase since 2020. In contrast, demand for gold jewelry declined, largely due to the price surge. The average gold price reached a record high of $2,386 per ounce, up 23% from the previous year. This increase had a negative impact on jewelry demand, with a global decline of 11%, and a 24% drop in demand from China, one of the largest consumers of gold jewelry.
The WGC predicts that this downward trend in jewelry demand will persist in 2025, due to ongoing economic and geopolitical uncertainties weighing on the market. In particular, consumers in developing countries are facing higher prices and local economic instability, which is curbing their gold jewelry purchases. However, gold demand as a safe-haven asset is expected to remain supported by these same uncertainties.
