Global demand for gold reached its highest level in 2024 since the World Gold Council (WGC) began publishing data, with central banks once again being the major buyers, particularly in the fourth quarter.
Demand last year reached 4,974.5 tons, which was one percent higher than in 2023, as calculated by the WGC in its quarterly report published on Wednesday.
Central banks were also the driving force behind demand last year, purchasing just over one thousand tons of the precious metal for the third consecutive year.
According to the association, the Polish central bank purchased the most gold, securing 90 tons for reserves, followed by India and Turkey.
From October to December, central monetary institutions around the world increased their purchasing pace, acquiring 333 tons of gold, which is 54 percent more than at the end of 2023, as calculated by the WGC based on reported purchases and estimates of other transactions.
Investors, on the other hand, bought 1,180 tons of gold, the highest in four years.
Central banks are expected to play a leading role in 2025 as well, according to the WGC, and they may be joined by investors in ETF funds, especially if interest rates are lowered and remain unstable, notes WGC analyst Louise Street.
– In 2025, the main themes of the year should be geopolitical and macroeconomic uncertainty, supporting demand for gold as a store of wealth and a hedge against risk – added Street.
Gold prices in the physical market rose by 27 percent last year, the highest since 2010, as investors sought safe assets and the U.S. Federal Reserve lowered interest rates.
On Wednesday, gold prices reached a new record level due to heightened trade tensions between China and the U.S.
In Europe, gold in the physical market increased by one percent to $2,869.79 per ounce. In the U.S. futures market, its price rose by 0.7 percent to $2,895.86.
