Global Gold Demand Reaches Record Levels in 2024

In 2024, the global demand for gold $GOLDUSD reached unprecedented levels, increasing by 1% to a record 4,974.5 metric tons. This surge was driven by increased investments in gold and heightened interest from central banks in purchasing during the fourth quarter, according to the World Gold Council (WGC).

Gold Price Surge and Its Causes

The year 2024 was marked by a significant surge in gold prices, growing by 27%, the highest increase since 2010. Several factors contributed to this price escalation:

1. Investment in Gold Investors moved funds into gold as a hedge against global risks. During market uncertainties, gold is traditionally seen as a safe-haven asset.

2. U.S. Federal Reserve Policy. The U.S. Federal Reserve's reduction in interest rates further fueled gold’s price growth, as lower rates make risk-free investments more appealing.

On Tuesday, gold prices hit a new record due to increased demand for safe-haven assets following China's imposition of tariffs on U.S. goods. This was in retaliation to the tariffs levied by President Donald Trump.

Increased Demand from Central Banks

The fourth quarter of 2024 witnessed a significant uptick in gold purchases by central banks, underlining the strategic importance of gold as a reserve asset to safeguard national currencies and economies from global market volatility.

Key Buyers

Among the central banks actively increasing their gold reserves were:

- Reserve Bank of India

- People's Bank of China

- Central Bank of Russia

These countries have been major purchasers of gold, contributing to the overall rise in metal demand.

The year 2024 saw a record-high demand for gold, driven by factors such as risk-hedging investments, lower interest rates, and increased central bank acquisitions. The gold market continues to be a vital indicator of economic stability and trends in the global financial arena.