Gold hits new record after all-time high demand

Total annual gold demand touched an all-time high last year in line with record prices for the yellow metal while the Trump administration’s widespread sowing of uncertainty continues to support bullion, according to the World Gold Council (WGC). 

Demand for gold touched a record of 4,974 tonnes in 2024, driven by sustained central bank buying and investment demand growth, the WGC said Wednesday in its Gold Demand Trends report for 2024. Volumes and gold prices, which hit a peak of US$2,790 per oz. in October, led to the highest ever total value of demand at US$382 billion.

“The demand trajectory of 2024 was far from linear, with central banks posting strong demand in the first quarter before moderating through the middle of the year and finishing with a strong fourth quarter,” Louise Street, WGC’s senior markets analyst said in a release.

“In 2025, we expect central banks to remain in the driving seat and gold exchange traded fund (ETF) investors to join the fray, especially if we see lower, albeit volatile interest rates. Geopolitical and macroeconomic uncertainty should be prevalent themes this year, supporting demand for gold as a store of wealth and hedge against risk.”

Gold has already this year set new records, with the spot price hitting another at US$2,872.20 per oz. by mid-Wednesday.

Tariff tailwinds for gold

Total gold supply rose 1% year-on-year, reaching a new record high of 4,794 tonnes. Growth in both mine production and recycling contributed to the increase in total gold supply, the council said.

Meanwhile, with U.S. President Donald Trump continuing to threaten tariffs, it’s expected that the main commodity to benefit will be gold, BMO Capital Markets said in a note on Sunday.

Gold will benefit from higher inflation expectations and possibly a global focus on de-dollarization – pivoting away from U.S. dollar-denominated trade – in reaction to Trump’s international behaviour, analyst George Heppel wrote.

“Tariffs are a tailwind for gold,” analyst George Heppel wrote. “The Trump administration’s increasingly aggressive foreign policy may have the unintended effect of making BRICS membership [in the emerging markets group] more enticing for foreign states, which could have the long-term impact of accelerated de-dollarization – a significant long-term driver of gold demand.”

Last year, central banks continued buying gold at a fast pace, the WGC said in its report. Purchases went over 1,000 tonnes for the third year in a row.

Investment up, jewelry down

Global investment demand rose 25% year-on-year to 1,180 tonnes – a four-year high – driven by a revival in gold ETF demand in the second half of last year.

The high prices lowered demand in the jewelry sector, which saw annual consumption decrease by 11% to 1,877 tonnes. Demand weakness in China mostly drove that trend downwards at a rate of 24% year-on-year. Indian demand was more persistent, and fell by just 2% last year.

The technology sector experienced its strongest gain since the final three months of 2021, with demand hitting 84 tonnes in the recent fourth quarter. A modest increase in gold usage in artificial intelligence applications and electronics contributed to a 7% year-on-year increase, coming to 326 tonnes for the year.