Global Gold Demand Sees 3% Year-on-Year Increase in Q1 2024
The World Gold Council released its “Global Gold Demand Trend Report” for the first quarter of 2024, revealing a 3% year-on-year increase in global gold demand. The report indicated that total gold demand, including over-the-counter transactions, reached 1,238 tons during this period.
According to the report, gold jewelry consumption saw a slight decrease of 2% to 479 tons in the first quarter of 2024, although this figure still remained higher than the average demand of the past five years. Meanwhile, demand for gold bars and gold coins experienced a 3% increase, totaling 312.3 tons.
Wang Lixin, CEO of the World Gold Council China, highlighted the significant growth in retail investment demand for gold coins and bars. This growth was seen not only in developed countries but also in developing nations.
In a surprising development, the report noted a significant increase in gold demand for science and technology purposes, particularly for artificial intelligence applications. Wang Lixin pointed out that technology gold consumption saw a growth rate of over 10% in the first quarter of 2024.
Central banks across the globe continued to purchase gold in the first quarter, driving the average price of gold to a record high of $2,070 per ounce. Additionally, global central bank gold reserves increased by 290 tons during this period, marking a 1% year-on-year growth and the highest first-quarter data since 2000.
Meanwhile, the gold market in China exhibited a differentiation in demand patterns amid high gold prices. Gold jewelry consumption in the Chinese market decreased by 6% year-on-year to 184 tons, whereas investment demand for gold bars and coins surged by 68% to reach 110 tons.
The People’s Bank of China indicated its commitment to purchasing gold, with China’s official gold reserves reaching 2,262 tons by the end of the first quarter. This amount represented an increase of 27 tons from the previous quarter, with gold accounting for 4.6% of China’s official foreign exchange reserves – the highest level in history.
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