Global demand for gold has reached a new high.

In a press briefing on February 5, 2025, the World Gold Council (WGC) stated that global gold demand reached new highs as prices surged in 2024.

Total demand for gold reached a new record high.

According to the World Gold Council's (WGC) report on gold demand trends for the fourth quarter and the whole of 2024, total annual gold demand (including over-the-counter - OTC) reached a new record high of 4,974 tonnes, driven by increased investment demand coupled with strong and continuous buying activity from central banks.

Gold market - Illustration

The combination of record-high gold prices and trading volume has resulted in total gold demand reaching an all-time high of $382 billion.

Central banks have been consistently buying gold at a rapid pace throughout 2024, with purchases exceeding 1,000 tonnes for the third consecutive year. Buying activity increased significantly in the fourth quarter, reaching 333 tonnes and bringing the total annual purchases by central banks to 1,045 tonnes.

Global demand for gold investment increased 25% year-on-year in 2023 to 1,180 tonnes – the highest level in four years – due to a resurgence in demand for gold exchange-traded funds (ETFs) in the second half of 2024.

Global ETFs added 19 tonnes of gold to their holdings in the fourth quarter of 2024, marking two consecutive quarters of gold inflows. Demand for gold bars and coins remained at a similar level to 2023, reaching 1,186 tonnes in 2024.

In 2024, ASEAN regional markets witnessed year-on-year growth in gold investment demand. However, in the fourth quarter, Vietnam bucked the regional trend with a 14% year-on-year decrease in 2023. The supply shortage limited investors' ability to purchase gold bars, leading to higher price premiums. In this context, some investors have shifted to buying gold rings. Although gold rings are classified as jewelry, these plain gold rings are often used as investment assets.

A sharp increase in the flow of money into gold investment.

Louise Street, senior market analyst at the World Gold Council, said gold is once again a topic of great interest in 2024, with gold prices reaching a record high of 40 last year.

Global demand for gold investment increased by 25% compared to the same period in 2023 - Illustration image.

However, demand for gold in 2024 did not fluctuate steadily but rather changed according to various factors. Central banks recorded strong demand in the first quarter before gradually declining in the middle of the year and then surging again in the fourth quarter.

Similarly, in the second half of 2024, Western investors returned to investing strongly in gold, coupled with a sharp increase in gold inflows from Asia, which brought global gold ETF inflows back to positive levels in the third and fourth quarters.

This is due to the start of interest rate cutting cycles by many central banks and increased geopolitical instability globally, including the US presidential election and escalating tensions in the Middle East.

According to Louise Street, in 2025, we expect central banks to continue to play a leading role and gold ETF investors to actively participate in the gold market, especially as interest rates fall, but volatility remains.

On the other hand, gold jewelry is likely to continue to decline as high gold prices and weak economic growth reduce consumer purchasing power. Geopolitical and macroeconomic instability are likely to be frequent occurrences this year, increasing demand for gold as a store of wealth and hedge against risk.

According to Shaokai Fan, Regional Director for Asia Pacific (excluding China) and Global Central Banker at the World Gold Council, total gold supply increased by 1% year-on-year in 2023, reaching a new record high of 4,794 tonnes. Growth in both mining and recycling contributed to this increase in total gold supply.

Source: https://congthuong.vn/nhu-cau-vang-tren-toan-cau-dat-muc-cao-moi-372400.html