Global Gold Demand Sees Increase in First Quarter of 2024
The World Gold Council released its “Global Gold Demand Trend Report” for the first quarter of 2024, highlighting a 3% increase in global gold demand compared to the same period last year.
According to the report, global gold demand, including over-the-counter transactions, reached 1,238 tons in the first quarter of 2024. Gold jewelry consumption decreased by 2% to 479 tons, but still exceeded the average demand of the past five years. Meanwhile, the total demand for gold bars and coins increased by 3% to 312.3 tons.
Wang Lixin, CEO of World Gold Council China, noted that the growth in demand for retail investment, particularly in gold coins and bars, was significant in the first quarter. This increase was observed not only in developed countries but also in developing nations.
Another noteworthy trend in the first quarter was the surge in demand for gold in science and technology, with a growth rate exceeding 10%, primarily driven by the demand for artificial intelligence applications.
The report highlighted that continued gold purchases by global central banks and solid investment demand pushed the average price of gold to a record high of $2,070 per ounce in the first quarter, a 10% increase from the previous year. Additionally, global central bank gold reserves increased by 290 tons, the highest first-quarter data since 2000.
In China, the gold market saw diverging trends in the first quarter due to high gold prices. While gold jewelry consumption decreased by 6% to 184 tons, investment demand for gold bars and coins surged by 68% to 110 tons. The People’s Bank of China continued to purchase gold, with official gold reserves reaching 2,262 tons by the end of the quarter, representing 4.6% of China’s official foreign exchange reserves, the highest level on record.
As the global gold market continues to evolve, the first quarter of 2024 witnessed significant shifts in demand dynamics, signaling potential opportunities and challenges for the industry moving forward.