According to the World Gold Council, total gold demand exceeded 4,974 tons and marked record-high figures throughout the fourth quarter and all of 2024. Market demand increased because of central bank acquisitions and market stability while investment interest remained strong. Total demand value in 2024 achieved a new record high due to both historic high gold price levels and reaching $382 billion.
Central bank purchases
Central banks adopted an even faster buying pattern of gold throughout 2024 which led to three consecutive years of purchases surpassing 1,000 tons. Through the fourth quarter the central banks dramatically increased their purchase numbers resulting in 1,045 tons over the entire year.
Read more: UAE Central Bank reports gold reserves over $6.6 billion by end of October 2024
Investment demand soars
The global investment demand for gold during 2024 recorded its highest annual boost in four years which amounted to 1,180 tons. The return of investor interest toward gold exchange-traded funds (ETFs) throughout the second half of 2024 caused fund purchases to rise to 19 tons and create back-to-back quarters of positive fund inflows.
Stability in alloys and coins
Gold alloy and coin demand throughout 2024 sustained the same rate as 2023 by reaching 1,186 tons. The increase in product prices during this period resulted in an 11 percent decrease in jewelry demand hence the demand dropped to 1,877 tons. The market experienced lower Chinese demand at 24 percent decline yet Indian demand stayed level despite elevated cost structures.
In the third quarter of 2023 the technology industry reached its highest demand level in two years with 84 tons. Total artificial intelligence and electronics demand for gold showed a 7 percent yearly increase with the result of reaching 326 tons.
Overall, total gold supply increased by 1 percent year-on-year, reaching a new record of 4,794 tons, driven by growth in mine production and recycling efforts.
