Tashkent, Uzbekistan (UzDaily.com) — The total annual demand for gold, including over-the-counter (OTC) transactions, reached a record 4,974 tonnes in 2024, driven by strong central bank purchases and growing investment interest, according to the World Gold Council’s Q4 and full-year report.

The combination of record-high gold prices and demand volumes resulted in the highest total value in history — US$382 billion.

Central banks remained active buyers in 2024, surpassing 1,000 tonnes for the third consecutive year. Purchases accelerated in Q4, reaching 333 tonnes, bringing the annual total to 1,045 tonnes.

Global investment demand increased by 25% year-on-year to 1,180 tonnes—the highest in four years—supported by a resurgence in demand for gold ETFs in the second half of 2024.

Gold-backed ETFs saw an inflow of 19 tonnes in Q4, marking the second consecutive quarter of net additions. Meanwhile, demand for gold bars and coins remained steady at 1,186 tonnes, similar to 2023 levels.

Unsurprisingly, soaring gold prices dampened demand in the jewelry sector, with annual consumption falling 11% to 1,877 tonnes. The decline was primarily driven by weakness in China, where demand dropped 24% year-on-year, although India remained relatively resilient, registering only a 2% decline despite record-high prices.

The technology sector recorded its best quarter since Q4 2021, with gold demand reaching 84 tonnes. Increased use of gold in artificial intelligence (AI) and electronics contributed to a 7% year-on-year growth, bringing total demand to 326 tonnes.

Total gold supply rose by 1% year-on-year to a record 4,794 tonnes, supported by increased gold mining output and higher recycling activity.

Louise Street, Senior Markets Analyst at the World Gold Council, commented: "Gold was in the spotlight in 2024, with prices hitting 40 record highs over the past year. However, demand trends were far from linear. Central banks demonstrated strong demand in Q1, saw a mid-year slowdown, but finished the year with a robust Q4. Western investors also returned in the second half, alongside strong Asian flows, pushing global gold ETFs into positive territory in Q3 and Q4. This was driven by central banks initiating rate-cut cycles and growing global uncertainty, including the U.S. presidential election and rising tensions in the Middle East."

"Looking ahead to 2025, we expect central banks to remain key players, while gold ETF investors could become more active, particularly if interest rates decline, albeit with volatility. On the other hand, weakness in the jewelry sector is likely to persist as high gold prices and sluggish economic growth limit consumer purchasing power. Geopolitical and macroeconomic uncertainty will likely be dominant themes, sustaining gold’s role as a store of value and a hedge against risk."