Gold Demand Hits Record High Globally In 2024, India Sees 5% Uptick: World Gold Council
The demand for gold peaked to a record high of 4,974.5 tonnes in 2024, even as it rose only 1% from a high-base of 4945.9 tonnes in 2023, according to a report released by the World Gold Council on Wednesday.
India's gold demand growth outperformed the global average, as the country logged a 5% uptick in 2024. The overall demand for gold in the country stood at 802.8 tonnes during the year, as compared to 761 tonnes in 2023, reported news agency PTI, which spoke to WGC Regional CEO, India, Sachin Jain.
The climb was sharper in value terms, as it went up by 31% to Rs 5,15,390 crore in 2024 from Rs 3,92,000 crore in 2023, it added.
The WGC report highlighted a surge in demand for gold as an instrument of investment, which rose 25% globally from 1,180 tonnes. Of this, Indian gold investment stood at 239 tonnes – "the highest since 2013", the report highlighted.
In local currency terms that equated to demand of Rs 1.5 lakh crore, marking an increase of 60% over the prior record set in 2023.
In its 2025 outlook, WGC sees the overall gold demand in India between 700 and 800 tones, Jain said. "It is expected that gold jewellery demand will recover due to wedding-related purchases, provided there is some level of price stability," he told PTI.
It is pertinent to mention here that the gold price touched multiple record highs over the past year.
According to the All India Sarafa Association, gold prices extended the rally for the fifth straight session and rose Rs 500 to hit a fresh peak of Rs 85,800 per 10 grams in the national capital on Tuesday amid robust demand from jewellers and retailers.
In this year, gold has surged Rs 6,410 or 8.07 per cent to Rs 85,800 per 10 grams from Rs 79,390 per 10 grams on Jan. 1.
Meanwhile, in 2024, the jewellery demand in India declined by 2% to 563.4 tonnes in 2024, compared to 575.8 tonnes in 2023, the WGC report pointed out.
The total jewellery demand, in terms of volume, decreased despite the gold price reaching multiple record highs. "This indicates the resilience of gold jewellery demand in India and highlights the effect of the duty cut in July as well as India's stronger economic growth compared to many other markets," Jain said.
He said that many consumers purchased gold jewellery in the late third quarter when the duty cut mitigated much of the recent price increase.
Gold prices resumed their upward trend after the July duty cut, and a subsequent correction in November attracted investors seeking lower-priced purchases, he added.
Nonetheless, Jain said, the value of gold demand during 2024 increased by 22%, illustrating the ongoing demand for gold and supported by the rise in gold prices throughout the year.
"Total gold investment went up by 29% in 2024, at 239.4 tonnes - the highest since 2013, compared to 185.2 tonnes in 2023, reinforcing gold's status as a safe-haven asset," Jain stated.
Gold recycling last year saw a decline of 2% at 114.3 tonnes from 117.1 tonnes in 2023.
With PTI inputs
