Gold prices, which have risen by more than 30% in 2024 to Rs 7,300 a gram in Indian markets (up 28% in USD as of November 30), are on track for their highest calendar year performance in ten years, according to a recent study by the World Gold Council.
However, analysts feel that given the economic and geopolitical obstacles, this outstanding run may not last until the end of 2025.
The sharp rally in gold prices globally in 2024 meanwhile, 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-CY24 – comparable to levels seen in 2022, according to WGC data.
 "Gold vs other asset classes in 2024")
Gold vs other asset classes in 2024
Emerging market central banks, WGC said, continued to dominate the gold market with Turkey and Poland adding 72 tonnes and 69 tonnes to their gold reserves, respectively till October 2024.
The Reserve Bank of India (RBI) added 27 tonnes in October, bringing its total gold purchases to 77 tonnes till October. India’s net buying till October was a five-fold increase on its 2023 activity, the report said.
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