Central banks and investors drive gold demand to record highs: World Gold Council

Global gold demand reached an all-time high in 2024, thanks to continued central bank purchases and stronger investment activity, the World Gold Council reported in the first week of February 2025.

Central banks and investors drive gold demand to record highs: World Gold Council

Gold prices hit 40 all-time highs in 2024 as demand continues to soar
Total annual gold demand, including over-the-counter (OTC) trade, climbed to 4,974 tonnes, breaking the previous record. The World Gold Council (WGC) report showed that the total value of gold demand also reached $382 billion as the price of gold hit 40 record highs throughout the year.

World Gold Council: Central banks and investors drive gold demand to all-time highs
Gold price on February 7, 2025.
全球各地的中央银行继续成为需求的主要推动力，连续第三年购买超过1,000吨黄金，第四季度的购买活动有所增强。2024年黄金投资显著增长，全球投资需求同比上涨25%，达到1,180吨。

The recovery in gold-backed exchange-traded funds (ETFs) also helped, with net inflows for two consecutive quarters. Meanwhile, demand for bars and coins remained unchanged at 1,186 tonnes, unchanged from 2023. The high price environment curbed jewelry consumption, which fell 11% to 1,877 tonnes.

World Gold Council: Central banks and investors drive gold demand to all-time highs
Source: World Gold Council report.
The decline was most pronounced in China, which fell 24% year-on-year. In contrast, India's gold jewelry market performed relatively well, falling only 2% despite record prices. In the technology sector, gold demand reached its strongest quarter since the end of 2021 in the fourth quarter, reaching 84 tons, due to the growth of gold applications in artificial intelligence (AI) and electronics.

Increased use of gold in artificial intelligence and electronics contributed to an annual increase of 7%, bringing total technology-related demand to 326 tons. Meanwhile, total gold supply rose 1% year-on-year to a record 4,794 tons, thanks to higher mine production and recycling. Looking ahead, the World Gold Council expects central banks to continue to stimulate demand in 2025, while ETF investors may play a more important role if interest rates fall.

Still, high prices and economic pressures could further constrain jewelry demand. Geopolitical uncertainty and macroeconomic influences, such as central bank policies and elections, are expected to shape gold's trajectory over the coming year. At press time, an ounce of .999 fine gold was trading at $2,873.

“In 2025, we expect central banks to continue to dominate markets, especially if interest rates are lower, but volatility will remain,” said Louise Street, senior market analyst at the World Gold Council.

WGC analysts added:

On the other hand, jewelry weakness is likely to persist as high gold prices and weak economic growth squeeze consumer spending power. Geopolitical and macroeconomic uncertainty is likely to be a prevalent theme this year, supporting demand for gold as a store of wealth and a hedge against risk.