Gold demand in Asia surged to record highs in 2024, driven by a combination of central bank buying, increased investment flows, and economic uncertainty.

According to the World Gold Council’s ( WGC ) Gold Demand Trends report for 2024, global gold demand also hit an all-time high of 4,974 tonnes.

Global investment demand increased 25% year-on-year to 1,180 tonnes, a four-year high, driven by a revival in gold ETF demand in the second half of 2024. Global gold ETFs added 19 tonnes in Q4 2024, marking two consecutive quarters of inflows for the asset class. Bar and coin demand stayed largely in line with 2023 volumes at 1,186 tonnes in 2024.

The technology sector also saw its strongest quarter since Q4 2021, with demand reaching 84 tonnes. A modest rise in gold volumes used in artificial intelligence and electronics contributed to a 7% y-o-y increase at 326 tonnes.

China and India

China, traditionally the world’s largest gold market, saw a sharp decline of 24% in jewellery consumption as record gold prices dampened affordability. However, this was offset by a 20% increase in Chinese bar and coin investment, as more investors shifted towards gold as a long-term store of value​.

In contrast, India’s gold jewellery demand proved resilient, declining just 2% despite record-high gold prices. The country’s deep-rooted gold-buying culture, especially during weddings and festival seasons, helped sustain demand even as prices surged​.

Central banks

Central banks played a key role in gold’s historic demand levels. Global central bank purchases exceeded 1,000 tonnes for the third consecutive year, reinforcing gold’s role as a strategic reserve asset.

In Asia, Singapore’s central bank, the Monetary Authority of Singapore ( MAS ), made a rare move by selling 10 tonnes of gold in 2024, the WGC said. However, it still retains a substantial 223 tonnes in reserves, signalling continued confidence in gold’s long-term value​.

“In 2024, global gold demand surged to a new quarterly high and a record annual total bolstered by heightened geopolitical and economic uncertainties. Central banks have extended their gold-buying streak to 15 consecutive years, reinforcing gold’s role as a strategic safe-haven asset class for risk management and financial stability,” says Shaokai Fan, head of Asia-Pacific ( ex-China ) and global head of central banks at the WGC.

Flight to safety

Singapore’s bar and coin investment demand rose by 22% y-o-y, highlighting the country’s growing appetite for gold as a strategic hedge against inflation and market volatility​. While gold jewellery consumption in Singapore dropped by 5%, mirroring a global trend of declining jewellery demand due to high prices, overall investment activity in the country remained robust​.

Asean nations, including Indonesia, Malaysia, and Thailand, also posted double-digit growth in annual gold investment demand, reflecting broader regional confidence in gold’s value as a safe-haven asset.

Hong Kong’s gold market reflected the broader trend seen across Greater China, with jewellery consumption falling by 25% y-o-y in 2024 as record-high gold prices deterred buyers.

Trend to continue

Despite the decline in consumer demand, bar and coin investment in Hong Kong surged by 24%, indicating a shift towards gold as a safe-haven asset amid economic uncertainty. This pattern mirrors China’s overall gold demand dynamics, where investors sought gold for wealth preservation, even as high prices made jewellery purchases less attractive​.

With gold prices reaching 40 record highs in 2024 and global economic uncertainties persisting, analysts expect continued strong demand for gold in Asia. While high prices may keep jewellery demand under pressure, central banks and investment flows are likely to sustain the precious metal’s upward trajectory in 2025​​.

As interest rates fluctuate and geopolitical tensions remain elevated, Asian investors are increasingly turning to gold as a hedge against risk, a trend that looks set to continue in the years ahead, the WGC says.