Informing the press on February 5, 2025, the World Gold Council (WGC) said that global gold demand reached a new high as prices skyrocketed in 2024.
Total gold demand hits new record high
The World Gold Council (WGC) Gold Demand Trends for Q4 and Full Year 2024 report shows that total annual gold demand (including over-the-counter (OTC) transactions) reached a new record high of 4,974 tonnes, driven by increased investment demand and continued strong central bank buying.
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| Gold market - Illustration photo |
The combination of record high gold prices and trading volumes has pushed total gold demand to an all-time high of $382 billion.
Central banks continued to buy gold at a rapid pace in 2024, with purchases exceeding 1,000 tonnes for the third consecutive year. Purchases picked up significantly in Q4, reaching 333 tonnes, bringing the total annual central bank purchases to 1,045 tonnes.
Global gold investment demand is set to rise 25% year-on-year in 2023 to 1,180 tonnes – a four-year high – driven by a resurgence in gold exchange-traded fund (ETF) demand in the second half of 2024.
Global ETFs added 19 tonnes of gold in Q4 2024, marking two consecutive quarters of inflows. Demand for gold bars and coins remained at levels similar to 2023 volumes, reaching 1,186 tonnes in 2024.
In 2024, ASEAN markets saw an increase in annual gold investment demand. In the fourth quarter, Vietnam bucked the regional trend with a 14% decline year-on-year, as supply shortages limited investors’ ability to purchase gold bars and led to higher price premiums. In this context, some investors turned to buying gold rings. Although gold rings are classified as jewelry gold, these plain gold rings are often used as investment assets.
Sharp increase in cash flow into gold investment
Gold is once again a hot topic in 2024, with prices hitting 40 record highs over the past year, said Louise Street, senior market analyst at the World Gold Council.
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| Global gold investment demand increased by 25% compared to the same period in 2023 - Illustration photo |
However, demand for gold in 2024 will not increase or decrease steadily but will fluctuate with many different fluctuations. Central banks recorded strong demand in the first quarter before tapering off in the middle of the year and rising again in the fourth quarter.
Similarly, in the second half of 2024, Western investors returned to gold investment strongly, along with a sharp increase in gold investment inflows from Asia, bringing global gold ETF inflows back to positive levels in the third and fourth quarters.
This is due to the start of interest rate cutting cycles by many central banks and increased geopolitical uncertainty globally, including the US presidential election and escalating tensions in the Middle East.
According to Ms. Louise Street, in 2025, we expect central banks to continue to play a leading role and gold ETF investors to actively participate in the gold market, especially when interest rates are falling, but there is still volatility.
On the other hand, gold jewelry is likely to continue to decline as rising gold prices and weak economic growth reduce consumers’ purchasing power. Geopolitical and macroeconomic instability are likely to be a recurring theme this year, increasing demand for gold as a store of wealth and hedge against risk.
Total gold supply increased by 1% year-on-year in 2023 to a new record high of 4,794 tonnes, said Shaokai Fan, regional director for Asia-Pacific (excluding China) and global head of central banks at the World Gold Council. Growth in both mining production and recycling contributed to the increase in total gold supply. |
Source: https://congthuong.vn/nhu-cau-vang-tren-toan-cau-dat-muc-cao-moi-372400.html
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