Global Gold Demand: A Balancing Act Amidst Uncertainty

Global gold demand in 2024 saw minimal growth, primarily due to decreased jewellery demand amidst high prices and economic uncertainties. Despite this, central bank purchases remained strong. Investment demand surged by 25%, driven by ETF flows. Geopolitical tensions and rate-cut cycles influenced the demand outlook.

Global gold demand maintained a modest growth rate of 1% in 2024, reaching 4,974 tonnes, the World Gold Council (WGC) reported. This plateauing demand mainly stemmed from reduced interest in jewellery due to soaring prices and shaky economic conditions.

Despite the lull in jewellery purchases, central banks continued to acquire gold at a consistent pace, keeping the annual figure near previous levels. Highlighting the year, investment demand soared, showing a 25% increase, driven predominantly by a revival in ETF investments, especially during the latter half of the year.

According to WGC Senior Markets Analyst Louise Street, rate-cutting by central banks and geopolitical tensions, including the U.S. elections and Middle East conflicts, played pivotal roles in shaping the global gold demand landscape for 2024.