Global Gold Demand Hits Record High in 2024 as Central Banks and Investors Drive Growth
In a landmark year for the gold market, global demand surged to an all-time high in 2024, fueled by sustained central bank acquisitions and rising investor interest. According to a report from the World Gold Council (WGC) released in early February 2025, these factors pushed total gold consumption to unprecedented levels, reinforcing the metal’s status as a preferred hedge against economic uncertainty.
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Gold Prices Reached 40 Record Highs Amid Surging Demand
Total annual gold demand, including over-the-counter (OTC) transactions, soared to 4,974 tonnes in 2024, surpassing previous records. The value of this demand reached an astonishing $382 billion as gold prices broke records 40 times throughout the year.
Central banks played a crucial role in driving this surge, purchasing over 1,000 tonnes of gold for the third consecutive year. The bulk of these acquisitions occurred in the fourth quarter, highlighting the continued trend of nations strengthening their reserves with the precious metal.
Investment Demand Sees Strong Growth, While Jewelry Sales Decline
Gold investment saw a significant uptick in 2024, with global investment demand rising by 25% year-over-year to reach 1,180 tonnes. A key driver of this increase was renewed interest in gold-backed exchange-traded funds (ETFs), which witnessed net inflows for two straight quarters after previous declines.
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Meanwhile, physical gold demand remained steady, with bars and coins recording a total consumption of 1,186 tonnes, consistent with 2023 levels. However, the rising price of gold negatively impacted jewelry purchases, leading to an 11% decline in this sector.
The steepest decline was observed in China, where jewelry demand dropped by 24% compared to the previous year. India, on the other hand, demonstrated resilience, with jewelry consumption declining by just 2%, despite record-high gold prices.
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Technology Sector Sees Increased Gold Utilization
Beyond traditional investment and jewelry markets, gold demand in the technology sector also saw a resurgence. In the fourth quarter, technology-related gold consumption reached 84 tonnes, marking its highest level since late 2021.
This increase was primarily attributed to the growing use of gold in artificial intelligence (AI) advancements and the broader electronics industry. As a result, total gold demand in the technology sector increased by 7% year-over-year to 326 tonnes.
Gold Supply Hits Record Levels with Higher Mine Output and Recycling
While demand hit record highs, global gold supply also experienced a 1% year-over-year increase, reaching 4,794 tonnes in 2024. This growth was driven by higher mining production and increased recycling activity, ensuring a steady flow of the precious metal into the market.
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Outlook for 2025: Central Banks and ETFs to Shape the Market
Looking ahead, the World Gold Council anticipates that central banks will continue to be a dominant force in the gold market throughout 2025. Additionally, if global interest rates decline, ETF investors are expected to play a more significant role in sustaining demand.
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However, potential challenges remain. The combination of high gold prices and economic pressures could further dampen jewelry demand, while macroeconomic uncertainties and geopolitical tensions are likely to shape the market’s trajectory in the coming months.
“At press time, an ounce of .999 fine gold is trading at $2,873 per unit,” the report noted.
“In 2025, we expect central banks to remain in the driving seat, while gold ETF investors could re-enter the market, especially if interest rates decline,” said Louise Street, Senior Markets Analyst at the World Gold Council.
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She added:
“However, jewelry demand is likely to remain weak as high gold prices and economic pressures limit consumer spending power. Geopolitical instability and macroeconomic uncertainty will continue to support gold as a safe-haven asset and hedge against risk.”
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With central banks maintaining their aggressive gold-buying strategies and investors seeking stability in volatile economic conditions, gold’s role as a premier store of value appears stronger than ever.
