According to a new report from the World Gold Council, total gold demand, including over-the-counter investment, has risen by 1 per cent year-on-year in Q4, which contributed to a record annual total of 4,974 tonnes.
Released on Wednesday, the report covered both the final quarter of 2025, and included an entire rundown of the year. It indicated that OTC gold investment had a slowdown in Q4, which caused a slight annual decline. Furthermore, strong demand from wealthy investors was directly effected by profit-taking and reduced activity.
Annual investment in gold surged to a four-year high of 1,180 tonnes, rising 25 per cent. Furthermore, gold exchange-traded funds (ETFs) saw their holdings remain essentially unchanged for the first time since 2020 in 2024. This broke a three-year trend of heavy outflows.
Meanwhile, Central Banks continued buying gold, surpassing 1,000 tonnes for the third consecutive year, with a sharp increase to 333 tonnes in Q4 alone. Full-year bar and coin demand held steady at 1,186 tonnes compared to the previous year, though bar investment grew while coin buying declined.
Technology demand for gold increased by 7 per cent to 21 tonnes in 2024, largely driven by the continued growth of AI adoption.
Gold jewellery consumption dropped by 11 per cent to 1,877 tonnes, as consumers could only afford to buy in smaller quantities. However, spending on jewellery rose by 9 per cent to USD$144 billion.
The London Bullion Market Association’s gold price hit 40 new record highs throughout the year, with an average price of $2,663 per ounce in Q4. This led to an annual average price of USD$2,386 per ounce, up 23 per cent.
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Mine production gets slight boost in 2024
Demand in value terms reached unprecedented levels, as the combination of record gold prices and volumes produced a Q4 value of USD$111 billion and the highest-ever annual value of USD$382 billion.
Meanwhile, the total supply increased marginally by 1 per cent year-on-year to 4,975 tonnes, as a consequence of the growth in both mine production and recycling.
Mine production saw a slight increase from 3,644.1 tonnes in 2023 to 3,661.2 tonnes in 2024, while recycled gold grew by 11 per cent, rising from 1,234.4 tonnes in 2023 to 1,370 tonnes in 2024.
Looking ahead to 2025, the World Gold Council expects central banks and ETF investors to continue driving demand, with economic uncertainty supporting the metal’s role as a risk hedge.
The council also anticipates that the demand for jewellery is likely to remain under pressure while recycling grows. Mine supply is anticipated to stay robust.
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joseph@mugglehead.com
