World Gold Council: Central Banks Drive Record Gold Demand in 2024, Trend to Continue in 2025

Gold demand surged in 2024, as central banks continued their record-breaking gold purchases, a trend expected to persist through 2025 and beyond. According to the World Gold Council (WGC) Annual & Fourth-Quarter Trends Report, global central banks bought 1,045 tonnes of gold last year, marking the third consecutive year of demand exceeding 1,000 tonnes—more than double the annual average (473 tonnes) from 2010-2021.

Central Banks Shift Away from the U.S. Dollar

Joseph Cavatoni, market strategist at the WGC, highlighted that growing geopolitical uncertainty is driving central banks to diversify away from the U.S. dollar.

📢 "The use cases for holding gold are clear and understood," said Cavatoni. "With growing government debt burdens and the dramatically changing geopolitical landscape, central banks will continue to buy gold."

This ongoing trend reflects a broader move away from fiat currencies, as central banks seek financial stability in physical gold reserves amid inflation fears and macroeconomic shifts.

Why Are Central Banks Buying More Gold?

🔹 Safe-Haven Asset – Gold remains a trusted hedge against currency devaluation and economic downturns.
🔹 Geopolitical Risk – Nations facing sanctions or economic instability seek gold to ensure monetary sovereignty.
🔹 Diversification Strategy – A shift away from U.S. dollar reserves as debt burdens increase.

Will Gold’s Price Surge Deter Central Banks?

Despite gold’s record-breaking rally, Cavatoni does not expect central banks to slow their gold accumulation in 2025.

📢 "Central banks have been net buyers for the last 15 years, yet their hunger for gold shows no sign of being quelled," WGC analysts noted.

While it’s challenging to predict precise demand levels for each central bank, analysts emphasize that macroeconomic trends, government debt, and global trade policies will continue to drive strong institutional gold demand.

Gold Market Outlook for 2025 and Beyond

With economic uncertainty at historic levels, precious metals investments are expected to remain in high demand. Investors looking for wealth protection are increasingly aligning with central banks’ strategies—shifting toward physical gold and gold-backed assets.

As central bank purchases shape the gold market, all signs point to continued strength in 2025 and beyond.

Source: World Gold Council
Written by: Joseph Cavatoni, Market Strategist at the WGC