World Gold Council: Gold demand will hit a new high in 2024, with central bank demand being "endless"
Global gold demand in 2024 is expected to reach 4,974 tons, an increase of 1.5% compared to 2023. Strong purchases by central banks are the main driving force, with purchases exceeding 1,000 tons for the third consecutive year, and the central banks of Poland, Turkey, and India being the major buyers. Investment demand also grew by 25%, reaching 1,180 tons, primarily driven by gold ETFs. Although jewelry demand fell by 11% due to high prices, central banks are still expected to be the main driving force behind future gold demand
In 2024, gold demand hits a new high, with central bank purchases as the main driving force, and the "gold fever" is expected to continue.
On Wednesday local time, the World Gold Council released its annual gold demand trends report. The report states that global gold demand will reach a new high in 2024, reaching 4,974 tons, an increase of 1.5% from 4,899 tons in 2023, primarily driven by strong purchases from central banks and increased investment demand.
Shaokai Fan, Global Central Bank Business Director at the World Gold Council, stated:
"In 2024, against the backdrop of increasing geopolitical and economic uncertainty, global gold demand has set new quarterly highs and annual total records."
Regarding central bank demand, the report noted that the demand for gold from central banks remains "endless" and has reached an "important milestone"—maintaining a strong purchasing pace for the third consecutive year, with purchases exceeding 1,000 tons, reaching 1,045 tons.
Among them, the National Bank of Poland is the largest net buyer among central banks, increasing its gold reserves by 90 tons in 2024; the Central Bank of Turkey added 75 tons of gold reserves, making it the second-largest net buyer among central banks; the Reserve Bank of India ranked third, increasing its gold holdings every month except December.
In terms of investment demand, total gold investment in 2024 is expected to grow by 25% to 1,180 tons, reaching the highest level in four years, primarily driven by gold ETFs. Investment demand for gold bars and coins has also seen steady growth, boosted by strong demand from the Chinese and Indian markets.
However, demand in the jewelry sector is suppressed by high prices, with a year-on-year decline of 11%, making it the only sector to experience a decrease. The World Gold Council stated that due to the impact of high prices and weak economic growth on consumer purchasing power, gold jewelry demand may continue to weaken this year.
Looking ahead to 2025, the World Gold Council expects that central banks will continue to be the main driving force behind gold demand, with investment demand likely to remain healthy, and central bank interest rate cuts could reduce the opportunity cost of holding gold.
The report states that the purchasing motives of central banks are often more strategic than those of other investors, and central banks have sold relatively little over the past fifteen years, resulting in a smaller reaction to price fluctuations—thus providing an important pillar for gold prices.
Louise Street, Senior Market Analyst at the World Gold Council, stated:
"In 2025, we expect central banks to continue leading demand, and gold ETF investors will also join in, especially if interest rates decline (even if volatility is high)."
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