Global Gold Demand Hits Record High

(MENAFN) Global gold demand increased by 1%, reaching an all-time high of 5,002 tons last year, fueled by heightened safe-haven interest amid geopolitical uncertainties and declining confidence in the dollar, according to a statement released Thursday by the World Gold Council.

"Combined with the record-breaking run in the gold price—setting 53 new all-time highs during the year—this yielded an unprecedented value of $555 billion (+45% year-on-year)," the council stated.

Investment interest in gold surged 84% year-on-year, totaling 2,175 tons. Notably, inflows into exchange-traded funds (ETFs) climbed to 801 tons, exceeding demand for jewelry for the first time. Meanwhile, gold jewelry consumption fell by 18% as prices soared, with China’s jewelry demand dropping 24% to its lowest level since 2009.

Investors also expanded their physical gold acquisitions. Worldwide demand for bullion and coins grew 16% to 1,374 tons, with the most substantial increases coming from China and India, which accounted for over half of the growth in this segment.

Total annual gold supply rose by 1% to a record 3,672 tons. Recycling contributed an additional 3% to the supply, reaching 1,404 tons, though this increase was modest compared with the 67% surge in gold prices measured in US dollars.

"Technology demand was stable despite disruption in the consumer electronics space, supported by continued growth in AI-related applications," the council noted.

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