Global gold demand remains flat in 2024, registers 1% growth

Global gold demand remained largely flat in 2024, registering a marginal 1 per cent growth from the previous year to 4,974 tonnes, mainly due to a decline in jewellery demand following high prices, softer economic growth and heightened global uncertainties, says World Gold Council

Mumbai: Global gold demand remained largely flat in 2024, registering a marginal 1 per cent growth from the previous year to 4,974 tonnes, mainly due to a decline in jewellery demand following high prices, softer economic growth and heightened global uncertainties, the World Gold Council (WGC) said in a report on Wednesday.

The total gold demand stood at 4,945.9 tonnes in 2023, according to WGC’s 2024 Gold Demand Trends report.

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“The demand trajectory of 2024, was far from linear, with central banks posting strong demand in the first quarter before moderating through the middle of the year and finishing with a strong fourth quarter.

“Likewise, the second half of the year saw a notable resurgence from western investors which, combined with remarkable growth in Asian flows, brought global gold ETF (Exchange-traded Fund) flows into positive territory in the third and fourth quarters,” WGC Senior Markets Analyst Louise Street said in a statement.

This was fuelled by the start of rate-cutting cycles by many central banks and heightened global uncertainties, including the US presidential election and escalating tensions in the Middle East, she added.

According to the report, for the third year in a row, the central banks continued to buy gold at the same pace buying 1,044.6 tonnes in 2024, compared to 1,050.8 tonnes in 2023, led by the National Bank of Poland buying 90 tonnes. The buying was ramped up significantly in the fourth quarter, reaching 333 tonnes, according to the report.

Global investment demand increased 25 per cent year-on-year to 1,179.5 tonnes – a four-year high – compared to 945.5 tonnes in 2023, driven by a revival in gold ETF demand in the second half of 2024. Gold ETFs added 19 tonnes in the last quarter of 2024, marking two consecutive quarters of inflows for the asset class.

Meanwhile, demand for bars and coins remained largely stable in 2024 at 1,186 tonnes, compared to 1,189.8 tonnes in the previous year. The report stated that high prices dampened the demand in the jewellery sector, with annual consumption decreasing 11 per cent to 1,877.1 tonnes compared to 2,110.6 tonnes in 2023.