Gold reached a record high this morning as wary investors turned to the precious metal for safety. The spot price climbed 0.6% to an all-time high of $2,861.78 per ounce, a 9% increase for the year and a robust 26% gain recorded in 2024.
Concerns over potential US trade tariffs, political instability, and global stock market volatility have spurred demand for gold, which reached record levels in 2024, according to the World Gold Council.
Overall, gold transactions totalled 4,974 tons, exceeding those recorded in 2023. Central banks played a significant role by purchasing over 1,000 tons for the third consecutive year, with Poland’s central bank topping the list by acquiring 90 tons, followed by Turkey at 75 tons, and India.
Investor demand for gold also increased, with overall investment rising 25% to reach a four-year peak. Intense buying activity from China and India drove gold bars and coins to surge.
In contrast, jewelry demand fell by 11% year-over-year as high prices curbed consumer spending.
Looking ahead, the World Gold Council expects central banks to continue as key buyers, with lower interest rates likely to further boost investment demand.
