Abstract：Central banks have purchased over 1,000 tons of gold annually for three consecutive years, and 2024 is no exception. However, the key question remains: as demand for gold continues to rise, will its price keep increasing?
According to data from the World Gold Council (WGC), since 2022, central banks gold purchases have remained at historically high levels. In 2024, total purchases amounted to approximately 1,045 tons. Although slightly lower than the previous year, this figure is still significantly higher than the annual average of around 550 tons between 2010 and 2023. The trend of central banks increasing their gold reserves has been evident since 2010, particularly following the global financial crisis.
In 2024, Poland, Turkey, and India were the top buyers of gold, purchasing 90 tons, 75 tons, and 73 tons, respectively. Meanwhile, after a six-month pause, China resumed its gold purchases in November 2024. Rising geopolitical risks and uncertainties have prompted central banks to shift their reserves from the U.S. dollar to gold, reinforcing the trend of “de-dollarization.”
Will Gold Prices Continue to Rise?
Given global economic uncertainties, including inflationary pressures, geopolitical risks, and the potential decline of the U.S. dollars dominance, gold demand is expected to keep growing. According to the latest WGC survey, 69% of central banks believe that gold purchases will increase over the next five years. As global central banks continue accumulating gold, prices are likely to remain high and may even rise further.
Considering the current and future demand trends, investors may need to rethink their gold allocation, particularly as central banks continue purchasing gold. For those anticipating further global economic uncertainty, gold remains a valuable asset to hold.
