Total gold demand, including over-the-counter (OTC) investment, rose 1% year-on-year in the fourth quarter to reach a new quarterly high and contribute to a record yearly total of 4 974 t, industry organisation the World Gold Council’s (WGC’s) ‘Gold Demand Trends’ report for the fourth quarter and full-year 2024 reveals.

Central banks continued to buy gold at considerable levels – buying exceeded 1 000 t for the third year in a row, having accelerated sharply to 333 t in the fourth quarter.

Yearly investment reached a four-year high of 1 180 t and representing a 25% year-on-year increase.

Gold exchange-traded funds (ETFs) had a sizable impact, with 2024 marking the first year since 2020 in which holdings were essentially unchanged, in contrast to the heavy outflows of the prior three years.

Full-year bar and coin demand was in line with 2023 at 1 186 t, the WGC reports.

The composition shifted as bar investment grew and coin buying reduced.

Yearly technology demand also added to the global total, as it increased by 21 t in 2024, largely driven by continued growth in AI adoption, the council points out.

Gold jewellery was the outlier, with consumption having dropped by 11% to 1 877 t as consumers could only afford to buy in lower quantities, the WGC avers.

However, spend on gold jewellery jumped by 9% to $144-billion.

The London Bullion Market Association gold price reached 40 new record highs during 2024.

The average fourth-quarter price of $2 663/oz was also a record and yielded a yearly average price of $2 386/oz – a 23% year-on-year increase.

Demand in value terms reached previously unseen levels, the council highlights.

The combination of record gold prices and volumes produced a fourth-quarter value of $111-billion. This took 2024 over the line to reach the highest-ever yearly value of $382-billion.

Total gold supply inched up 1% year-on-year to 4 975 t, marking a high for the council’s data series. Growth in both mine production and recycling contributed to the increase in total supply of gold.

A sharp slowdown in fourth-quarter OTC investment led to a slight yearly decline.

Demand from high net worth investors remained good, but contrasted with profit-taking in some areas of OTC investment.

The council expects that for the full year 2025, central banks and ETF investors are likely to drive demand with economic uncertainty supporting gold’s role as a risk hedge, but on the flipside, keeping pressure on jewellery.