According to the latest Global Gold Demand Trends Report from the World Gold Council (WGC), total global gold demand in 2024—covering both exchange-based and over-the-counter transactions—rose to a record 4,974 metric tons, an increase of 1% compared to 2023. Notably, total acquisitions by central banks exceeded 1,000 tons for the third consecutive year.
Meanwhile, the average gold price for 2024 reached US$2,386 per ounce, up 23% from the previous year; the average for the fourth quarter alone hit US$2,663, and this strong upward trajectory has carried into 2025.
Central banks maintained a powerful buying spree in 2024, with net purchases at 1,045 tons—333 tons of which came in Q4. Poland’s central bank led the pack by adding 90 tons, and other emerging-market banks also contributed substantially. This marks the third straight year that global central bank purchases have surpassed 1,000 tons, a sharp increase over the pre-2022 average of under 500 tons. With geopolitical and monetary policy uncertainty ongoing, central bank buying momentum may well continue in 2025.
Alongside central banks, investor interest was another key driver of the gold market. In 2024, total gold investment reached 1,180 tons—up 25% year-on-year and its highest level in four years. Notably, gold exchange-traded funds (ETFs) saw substantial inflows in the latter half of 2024. Unlike the large outflows in previous years, ETF holdings hardly declined at all, reflecting a shift in investor sentiment toward more active gold allocation. Contributing factors include lower interest rates, rising geopolitical risks, and a strengthening gold price.
Technology and industrial applications for gold increased by 7% in 2024, reaching 326 tons. Of particular note was a 9% rise in gold demand within the electronics sector. With the growing adoption of artificial intelligence (AI) and infrastructure tied to emerging technologies, gold continues to play an important role in frontier tech as well as renewable energy.
Gold surged 30% in 2024, repeatedly setting new record highs. After breaking the US$2,500 mark, prices crossed US$2,600 and US$2,700. Moving into 2025, the furious pace persisted, with gold pushing above US$2,800 and eventually breaching US$2,900.
This year’s wave of upward momentum is closely tied to US trade policies. Recently, President Donald Trump announced a 25% tariff on steel and aluminum imports, along with reciprocal tariffs against all countries, sparking fears of retaliatory measures and driving increased safe-haven demand for gold. Amid these uncertain trade developments, gold jumped 1.48% on Monday to US$2,902.30 at one point during the session.
Joe Cavatoni, Senior Market Strategist for the Americas at the WGC, believes gold’s record-breaking performance is largely driven by investors viewing the metal as a way to diversify and hedge against potential shocks. He notes that in the next two to three months, uncertain policy environments could further impact risk assets, thereby strengthening gold’s role as a haven. At the same time, expectations of lower interest rates continue to support the metal’s price, while tariff-driven trade friction amplifies economic concerns and underscores gold’s appeal as a hedge.
