Gold Prices and Trading Volume Hit Record Highs Worldwide

Record Highs Broken 40 Times in a Year

Demand Expected to Remain Strong This Year

Last year, global gold trading volume, total transaction value, and average trading price all reached record highs.

According to the World Gold Council (WGC) on the 5th (local time), last year's global gold trading volume (including over-the-counter transactions) reached a record high of 4,974 tons. Trading in the fourth quarter alone increased by 1% year-on-year, setting a quarterly record.

Based on the afternoon fixing price of the London Bullion Market Association, gold prices broke record highs 40 times throughout last year. The average price in the fourth quarter was a record $2,663 per ounce, and the annual average price was also a record $2,386 per ounce, up 23% from the previous year.

The total transaction value of gold reached a record $111 billion in the fourth quarter alone, and $382 billion annually. Demand from central banks was high. Central banks' gold purchases exceeded 1,000 tons for three consecutive years, and in the fourth quarter alone, it surged to 333 tons, a sharp increase from the previous year.

Gold investment also increased by 25% year-on-year to 1,180 tons last year, the highest in four years. There was significant investment in gold exchange-traded funds (ETFs). Trading in gold bars and coins remained at a similar level to 2023 at 1,186 tons. However, investment in gold bars increased while coin trading decreased.

Demand in the industrial sector also increased by 7% year-on-year to 21 tons. The AI boom is analyzed to have influenced the increase in demand.

Gold jewelry demand decreased by 11% to 1,877 tons. Consumers seem to feel burdened by the rising gold prices. However, spending on gold jewelry increased by 9% to $144 billion as gold prices rose.

For this year, the World Gold Council expects demand to be driven by central banks and ETF investors using gold as a hedge against increased global economic uncertainty. However, pressure on gold jewelry is expected to continue.

Gold prices have risen by 9% so far this year.

Hye-won Ahn, Hankyung.com reporter anhw@hankyung.com