According to the World Gold Council (WGC), global gold demand, including over-the-counter (OTC) trading, grew by 1% to a record 4,974.5 metric tons in 2024, driven by increased investment. Central banks accelerated their purchasing during the fourth quarter.
Spot gold prices surged by 27% last year, the largest increase since 2010, reflecting investor interest in hedging against global risks and in response to interest rate cuts by the U.S. Federal Reserve. Central banks, significant contributors to gold demand, acquired over 1,000 tons of gold for the third consecutive year. The National Bank of Poland emerged as the largest buyer, adding 90 tons to its reserves.
Investment demand for gold jumped by 25% to a four-year high of 1,180 tons in 2024. The investment shift saw a 10% rise in bar buying while coin purchases fell by 31%.
Looking ahead to 2025, WGC senior markets analyst Louise Street predicts central banks and gold ETF investors to be significant players amid potential volatile interest rates. She foresees geopolitical and macroeconomic uncertainties supporting gold demand as a safe haven and risk hedge.
Overall, excluding opaque OTC trading, total gold demand increased by 1% to 4,553.7 tons in 2024, the highest since 2022, with a 7% dip in OTC demand towards the end of the year due to profit-taking. Meanwhile, gold jewelry consumption decreased by 11%, with steady mine production and a 15% rise in recycling.
In the coming year, WGC anticipates sustained pressure on jewelry demand alongside an increase in recycling due to elevated price levels.