Precious metal Gold demand climbs to a record high in 2024
Never before has so much gold been in demand worldwide at such a high price as last year. According to the World Gold Council, buying interest reached a total value of 382 billion US dollars. And according to experts, the gold rush is likely to continue for the time being.
05.02.2025, 10:24
SDA
According to the Gold Demand Trends Report published on Wednesday, central banks and investors were the main drivers of the surge. Total demand for gold reached a new record high of 4,974 tons last year.
More production in mines and recycling
However, the supply of gold also increased. It rose by 1 percent compared to the previous year and reached a new high of 4794 tons. It was therefore below demand. Growth in mine production and recycling contributed to the increase.
Central banks in emerging markets in particular continued to buy gold at a high rate in 2024. The total annual volume was 1045 tons. Purchases exceeded 1000 tons for the third year in a row. Purchases recently increased significantly in the fourth quarter. They reached 333 tons.
Gold also picked up as an investment. Global investment demand reached a four-year high in 2024, rising by 25% year-on-year to 1180 tons. According to the gold industry, the increase in the second half of the year was mainly due to global exchange-traded funds (gold ETFs).
More gold for AI
In the technology sector, gold was also in greater demand than it has been for a long time. The sector experienced its strongest quarter since the end of 2021 with demand of 84 tons, while a slight increase in the amount of gold used in artificial intelligence (AI) and electronics also contributed to a year-on-year rise of 7% to 326 tons.
In contrast, physical demand for gold in the form of bars and coins remained constant. At 1186 tons, it remained largely at the level of 2023.
The price of a troy ounce (around 31.1 grams) rose to just under 2870 US dollars on Wednesday morning. It was thus more expensive than ever before. Gold extended its price gain this year to nine percent. Since the fall of 2022, the troy ounce has risen in price by around 75 percent.
The high prices ultimately dampened demand in the jewelry sector. Annual consumption fell by 11 per cent to 1,877 tons. The slump was mainly attributable to China, where consumption fell by a quarter compared to the previous year. By contrast, demand in India proved robust in 2024, where demand fell by just 2% at record prices.
"No better protection against Trump worries"
Experts expect gold to remain "in" as a store of value and hedge against risks. This is due to the interest rate cut cycles of many central banks and increased global uncertainties. The main reasons for this are the second, unpredictable US presidency under Donald Trump and ongoing tensions in the Middle East.
There is no better hedge than gold to protect a portfolio from Trump worries, wrote analyst Ipek Ozkardeskaya from Swissquote on Wednesday. "The more chaotic international relations become, the greater the demand - especially from central banks looking to reduce their exposure to the US."
