SINGAPORE investors did not shy away from physical gold despite its soaring prices in 2024, leading the demand growth in Asean region with 6.5 tonnes of gold bars and coins purchased.
This is up 22 per cent from 5.3 tonnes in 2023, according to World Gold Council’s (WGC) gold demand report released on Wednesday (Feb 5).
The Asean markets covered in the report registered rising investment demand for physical gold. Malaysia investors bought 6.4 tonnes of bars and coins, up 21 per cent on the year, while Indonesia investors bought 19 per cent more physical gold at 24.5 tonnes.
Thailand, as a leading market for physical gold investment, purchased 39.8 tonnes gold bars and coins, up 17 per cent on the year.
“Local currency performance was a key driver of this growth, with investors focused on gold’s role as a hedge. And currency moves across the region resulted in a local price performance that exceeded the US dollar gold price return, which made a more compelling case for investing,” said WGC.
East vs West
Asean investors’ hype for gold bars and coins was, nonetheless, an Asian story. Major Asian markets such as China and India saw greater influx into physical gold, while Western investors lost some interest in gold bars and coins.
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In 2024, when gold prices surged more than 25 per cent, India investors bought 239.4 tonnes of gold bars and coins, up 29 per cent year on year. China investors purchased 20 per cent more gold bars and coins, at 345.7 tonnes.
Investors in the Americas purchased 87.8 tonnes or so, down 31 per cent. Investors from Europe ex the Commonwealth of Independent States, at the same time, saw demand drop 50 per cent, thus bagging 66.6 tonnes of gold bars and coins.
Global bar and coin investment in 2024 stayed largely in line with 2023 volumes at 1,186 tonnes.
Overall investment demand for gold, comprising both gold-backed ETFs as well as bars and coins, hit a four-year high as it increased 25 per cent year on year to 1,179.5 tonnes. It was driven by a revival in gold ETF demand in the second half of 2024, which added 19 tonnes in the fourth quarter, said WGC.
Demand for gold, including investment, jewellery fabrication, central bank purchases and technology uses, stood at 4,553.7 tonnes in 2024, up 1 per cent from 2023.
Strong central banks’ purchases
WGC highlighted that central banks’ appetite for gold reserves stayed strong, driven by emerging market banks such as Poland, Turkey, India and China.
In total, global central banks bought 1,044.6 tonnes of gold in 2024. It marked the third year in a row of the institutions adding more than 1,000 tonnes of gold reserves.
“Selling activity was also seen throughout the year, although in most cases appearing more tactical than strategic in the face of a rapidly rising gold price, as well as in more modest volumes than the purchases seen elsewhere,” noted WGC.
Fan Shaokai, head of Asia-Pacific (ex-China) and global head of central banks at WGC, highlighted: “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.”
High prices stifle jewellery demand
An unrelenting gold price strength dampened jewellery consumption. Global jewellery demand fell 11 per cent to 1,877.1 tonnes, driven by weakness in major gold jewellery markets China and India.
“Despite a seasonal quarterly improvement in Chinese Q4 gold jewellery demand, the year-on-year comparison showed a sharp decline,” said WGC.
It added that the Chinese gold jewllery demand for 2024 fell 24 per cent on the year to 479.3 tonnes, 26 per cent below the 10-year average and 10 per cent lower than 2020 when demand was ravaged by Covid.
Full-year demand in India was 2 per cent lower at 563.4 tonnes, which WGC noted as “resilience” amid record-high gold prices, reflecting the country’s relatively healthy economic environment.
The organisation added that many Indian consumers front-loaded their gold jewellery buying in the third quarter of 2024 when the duty cut on gold import effectively offset much of the price increase.
Gold prices continued to notch record highs in 2025 amid tariff announcements by US President Donald Trump and China’s retaliation, fuelling safe-haven demand for gold.
Spot gold hit a new high at US$2,848.94 per ounce in early morning on Wednesday, while US gold futures steadied at US$2,876.10 per ounce.
Louise Street, senior markets analyst of WGC, expects central banks’ purchases and gold ETFs continue driving gold demand in 2025, especially under a lower, albeit volatile, interest-rate environment.
“On the other hand, jewellery weakness will likely continue as high gold prices and soft economic growth squeeze consumer spending power.
“Geopolitical and macroeconomic uncertainty should be prevalent themes this year, supporting demand for gold as store of wealth and hedge against risk,” added Street.
