Record Demand in 2024
Global gold demand hit record levels in 2024, driven by multiple factors converging simultaneously. The combination of geopolitical uncertainty, monetary policy shifts, and sustained central bank buying created unprecedented support for gold prices.
Central Bank Buying
Central banks purchased over 1,000 tonnes of gold for the third consecutive year, reflecting a strategic shift toward gold as a reserve asset. This sustained institutional demand provides a strong price floor and signals long-term confidence in gold's role in the global monetary system.
ETF Inflows and Investment Demand
After periods of outflows, gold ETFs saw renewed inflows into 2025 as investors sought safe-haven assets amid macro uncertainty. Investment demand strengthened across multiple regions, with particularly strong interest from institutional investors hedging against inflation and currency risks.
Price Trajectory
Gold spot prices tested and exceeded $4,000/oz in early 2025, driven by safe-haven demand and positive forecasts. Analysts project persistent strength based on:
- Continued central bank accumulation
- Geopolitical tensions and risk-off sentiment
- Inflation concerns and currency debasement fears
- Technical breakouts attracting momentum buyers
Market Drivers to Watch
Key factors influencing gold prices include interest rate policies, US dollar strength,geopolitical risks, and ongoing central bank purchases. Understanding these interconnected dynamics helps contextualize both short-term volatility and long-term trends.