Gold may see best year in a decade

Prices have climbed over 30% in 2024 led by central bank purchases, investor buying: WGC report

- PUNEET WADHWA

Gold prices that have climbed over 30 percent so far in 2024 to ₹7,300 per gram in the Indian markets (up 28 percent in dollar terms till November-end) are set for their best calendar year performance in 10 years, suggests a recent report by World Gold Council (WGC).

However, this stellar run, analysts believe, may not carry through till the end of 2025 in the backdrop of economic and geopolitical headwinds.

The sharp rally in gold prices globally in 2024, the WGC report said, was led mostly by central bank purchases and investor buying, which more than offset a notable deceleration in consumer demand.

Central bank demand remained robust, with gold buying reaching 694 tonnes by Q3 of CY24 compared to levels seen in 2022, according to WGC data.

Emerging market central banks, WGC said, continued to dominate the gold market with Türkiye and Poland adding 72 tonnes and 69 tonnes, to their gold reserves, respectively, till October 2024.