World Gold Demand Hit Fresh High in 2024

The central banks played a crucial role in driving gold demand.

SEATTLE (Scrap Monster): The global demand for gold, including over-the-counter (OTC) transactions, reached a record high of 4,974 tonnes last year, according to the Gold Demand Trends Report for the Full Year 2024. Strong central bank purchases of the yellow metal and strong investment demand were the main causes of the demand spike. The previous year's total demand for gold was estimated to be $382 billion.

The demand for gold was mostly driven by the central banks. Over 1,000 tons of gold were purchased by the central bank for the third year in a row. According to the WGC report, 333 tonnes of expedited purchases were made in the final quarter of the year, bringing the total annual buying to 1,045 tonnes.

Gold ETF Flows Flipped Back to Positive, AUMs Hit New Record

The investment demand for gold rose significantly by 25% year-on-year to total 1,180 tonnes. This was the highest level in four years. Gold ETF holdings remained essentially unchanged in 2024, in contrast to the heavy outflows recorded during the prior three years. The bar and coin demand also was in line with 2023 at 1,186 tonnes. The continued growth in AI adoption led to 7% jump in technology demand during the previous year.

However, the yearly consumption of gold jewelry saw a significant 11% decrease to 1,877 tonnes. Due to the extremely high price of gold, the total amount spent on gold jewelry increased by 9% to $144 billion.