By Swann Collins, investor, writer and consultant in international affairs – Eurasia Business News. February 24, 2025. Article no 1431.
Gold demand in 2024 reached unprecedented levels, driven primarily by central banks and private investors interest amidst ongoing geopolitical and economic uncertainties such as inflation fears or the breakdown of global trade. Analysts now continue to keep an eye on $3,000 an ounce, a price that could be hit this week.
The gold market has been on an unprecedented winning streak, ending the last eight weeks not only in positive territory but at all-time highs. The precious metal is on its longest weekly rally since mid-2000 when prices made their first run to $2,000 an ounce. Spot gold last traded at $2,935.80 an ounce, roughly flat on the day and up more than 2% from last Friday’s close (February 21). It’s only a matter of time before gold prices push to $3,000 an ounce and beyond.
This monday morning gold was traded at $2,939 an ounce.
Here are the key trends for gold price from the year 2024 :
Record Demand: Total gold demand rose by 1% year-on-year to a record 4,974.5 metric tons, with a total value of $382 billion, marking the highest annual demand recorded by the World Gold Council (WGC)12.
Central Bank Purchases: Central banks continued their aggressive buying strategy, purchasing over 1,000 metric tons for the third consecutive year. Although annual purchases slightly declined by 1% to approximately 1,045 tons, there was a significant surge in the fourth quarter, where purchases reached 333 tons.
Investment Demand Surge: Investment demand for gold saw a notable increase of 25%, reaching a four-year high of 1,180 tons. This growth was largely fueled by renewed interest in gold exchange-traded funds (ETFs), which recorded inflows for two consecutive quarters towards the end of the year.
Jewelry Sector Decline: In contrast to other sectors, jewelry demand fell by 11% to 1,877 tons. This decline was primarily attributed to high gold prices and weaker consumer purchasing power, especially in China where demand dropped by 24%. Indian demand remained relatively stable, decreasing only by 2%.
Technological Demand Growth: The technology sector also contributed positively, with gold demand increasing by 7% to 326 tons, driven in part by rising applications in artificial intelligence and electronics.
Price Dynamics: The average gold price soared throughout the year, with significant volatility reflecting ongoing global uncertainties. The average price in the fourth quarter of 2024 reached $2,663 per ounce.
2025 full year outlook: central banks and ETF investors likely to drive demand with economic uncertainty supporting gold’s role as a risk hedge, but on the flipside, keeping pressure on jewellery.
Read also : Gold : Build Your Wealth and Freedom
Overall, while gold demand showed resilience and growth in investment areas, challenges in the jewelry market highlighted the impact of high prices on consumer behavior. The trends observed in 2024 suggest that geopolitical tensions and economic factors will continue to influence gold’s status as a safe-haven asset moving forward.
Gold is a long-term store of value and this storage capacity is standardized internationally. Each troy ounce of gold has the same value. The yellow metal is an asset with intrinsic value in itself, capable of maintaining its purchasing power throughout the centuries and around the world.
Donald Trump’s return to power in the United States is expected to further worsen relations between the United States and China and would lead to an increase in geopolitical risks and demand for the precious metal.
Our community already has nearly 145,000 readers!
Subscribe to our Telegram channel
Follow us on Telegram, Facebook and Twitter
© Copyright 2025 – Eurasia Business News. Article no. 1431.
Eurasia Business News 