New Delhi: The World Gold Council's Q4 and Full Year 2024 Gold Demand Trends report has revealed that total global gold demand, including over-the-counter (OTC) transactions, reached a record high of 4,974 tonnes in 2024.
This surge was driven primarily by strong central bank purchases and increased investment demand. The combination of record-breaking gold prices and high volumes resulted in an all-time high total value of demand, reaching USD 382 billion.
Sachin Jain, Regional CEO, India, World Gold Council, said, "Our outlook for 2025 gold demand is between 700-800 tonnes. It is expected that gold jewellery demand will recover due to wedding-related purchases, provided there is some level of price stability. Additionally, it is anticipated that the trend of robust gold investment demand will continue, with retail investors showing growing interest in gold ETFs, digital gold, and coins and bars."
Central banks played a crucial role in driving gold demand, purchasing over 1,000 tonnes of gold for the third consecutive year. Buying accelerated significantly in the last quarter, with central banks adding 333 tonnes, bringing the total annual purchases to 1,045 tonnes.
Investment demand for gold also experienced robust growth, increasing by 25 per cent year-on-year to 1,180 tonnes, marking a four-year high.
Louise Street, Senior Markets Analyst, World Gold Council, said, "In 2025, we expect central banks to remain in the driving seat and gold ETF investors to join the fray, especially if we see lower, albeit volatile interest rates."
This was largely due to a revival in demand for gold exchange-traded funds (ETFs) in the second half of 2024.
Gold ETFs added 19 tonnes in Q4 2024, achieving two consecutive quarters of inflows. Meanwhile, bar and coin demand remained stable at 1,186 tonnes, in line with 2023 levels.
However, despite the high demand, the jewellery sector witnessed an 11 per cent decline in global consumption, falling to 1,877 tonnes. The drop was largely attributed to a 24 per cent year-on-year decline in China.
However, Indian jewellery demand remained relatively resilient, dipping just 2 per cent in 2024, even as gold prices hit record highs. The total jewellery demand for 2024 stood at 563.4 tonnes from 575.8 tonnes in 2023.
Investment demand in India showed growth, surging 29 per cent year-on-year to 239.4 tonnes--the highest since 2013.
The value of investment demand jumped 61 per cent to Rs1,53,700 crore. This increase was fuelled by gold's appeal as a safe-haven asset amid rising prices, ETF inflows, and festive-season buying during Dhanteras and Diwali.
Gold recycling in India declined by 2 per cent in 2024, totalling 114.3 tonnes. However, Q4 saw an increase of 16 per cent, with recycling reaching 29.6 tonnes. Meanwhile, net bullion imports fell by 4 per cent to 712.1 tonnes for the year, reflecting a cautious approach among traders and investors. (ANI)