1. Central banks' gold purchases reached 1,044.6 metric tons in 2024. 2. Total gold demand rose to 4,974.5 metric tons, up 1% from 2023. 3. Investment in gold increased by 25%, hitting a four-year high. 4. Geopolitical uncertainties are likely to bolster gold as a safe asset. 5. New U.S. tariffs could increase inflation, driving gold demand higher.
The increase in central bank buying and demand signals strong support for gold prices. Historical trends show that higher central bank purchases often correlate with rising gold prices.
The article provides crucial insights into gold demand dynamics, which directly impact GC00 pricing. As central banks continue their buying streak, the resulting upward pressure on gold prices becomes critical.
Sustained high demand and geopolitical uncertainties will likely influence gold prices over several years. Past examples show prolonged buying trends from central banks have led to sustained price increases.