Gold demand increased amid high prices and weak economic growth; Know what is in the WGC report

On Wednesday, the World Gold Council (WGC) revealed that gold demand in 2024 in the world continued to remain broadly level and increased marginally by 1% to 4,974 tonnes compared to 2023. In its report, it added that demand increased for gold in a drop in jewelry demand in a high price, poor economy, and uncertainty in the world. In its 2024 Gold Demand Trends Report, WGC added that gold demand in 2023 reached 4,945.9 tonnes. In its report, "the first and fourth quarters of 2024 experienced strong demand."

"Western investors showed significant interest in gold in the second half of the year," Lewis Street, senior market analyst at WGC, said in a statement. This led to an increase in global gold ETF (exchange-traded fund) flows in the third and fourth quarters." He said this situation has arisen due to the start of interest rate cuts by many central banks and global uncertainties, including the US presidential election and rising tensions in the Middle East. According to the report, for the third consecutive year, central banks continued to buy gold and bought 1,044.6 tonnes of gold in 2024. In 2023, central banks bought 1,050.8 tonnes of gold. The National Bank of Poland bought the most gold, 90 tonnes.

According to the report, there was a significant increase in purchases in the fourth quarter and it reached 333 tonnes. Global investment demand for gold in 2024 increased by 25% year-on-year to 1,179.5 tonnes. This is the highest level in four years. In 2023, this figure was 945.5 tonnes. The reason for the increase in gold demand is the increase in the purchase of gold ETFs in the second half of 2024. Gold ETFs rose by 19 tonnes in the last quarter of 2024. Meanwhile, demand for bars and coins remained largely stable at 1,186 tonnes in 2024 as against 1,189.8 tonnes in the previous year.