On February 5th, a noteworthy event occurred during the European trading session that sent ripples through the financial marketsThe prices of COMEX gold and London gold both soared to unprecedented heights, breaking historical recordsAt one juncture, the price of COMEX gold eclipsed the remarkable threshold of $2900 per ounceMeanwhile, London gold achieved a remarkable peak of $2877.04 per ounceSuch milestones underscore the growing allure of gold as a safe haven amid global uncertainties, heightening investor interest in the yellow metal.

Contributing to this surge is the latest report from the World Gold Council (WGC), which unveiled insights into global gold demand trends for both the current year and the fourth quarter of 2024. The findings revealed that central banks across the globe intensified their gold purchases in 2024, acquiring over 1000 tons for the third consecutive year

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Additionally, China's market witnessed a staggering 87% increase in total holdings of gold ETFs, reaching 115 tons—an all-time record.

With a steady rise in gold prices since the beginning of the year, the momentum is driven not only by market sentiment but also by fundamental shifts in global economic conditionsThe COMEX gold experienced a daily increase of over 0.8% on February 5th, reflecting a year-to-date growth exceeding 9%, while London gold followed suit, soaring by more than 1% during the same period.

The recent decline in the U.S

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dollar index, which witnessed a near 0.9% drop over three trading days, has also played a pivotal role in propelling gold prices upwardAs gold is typically inversely correlated with the dollar, this trend has further stimulated investor actions favoring gold investments.

Looking toward the future, major financial institutions such as Goldman Sachs have expressed bullish sentiments regarding precious metalsIn a recent analysis, Goldman indicated a continued forecast of rising gold prices, maintaining projections of $3000 per ounce by the second quarter of 2026 due to increasing economic instability in the U.SMoreover, Kitco Metals' Senior Market Analyst, Jim Wyckoff, highlighted that uncertainty stemming from the current U.S

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government's policies could lead central banks to bolster their gold acquisitions, favoring it as a diversification strategy against dollar-denominated assets.

On the 5th of February, the World Gold Council (WGC) released its report detailing the trends in global gold demand for both the entire year and the fourth quarter of 2024. The report indicated that overall gold demand encompassing over-the-counter (OTC) transactions grew by 1% year-over-year to reach 1297.4 tons in the fourth quarter, with total demand for the year climbing 1% to 4974.5 tonsThese figures mark new highs in both quarterly and annual demand.

Central banks' aggressive gold purchases continued unabated, maintaining a momentum that has lasted for three years, with total purchases surpassing an impressive 1000 tons

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The WGC reported that central banks demanded 1044.6 tons of gold in 2024, with Poland, India, and Turkey emerging as the largest buyersNotably, fourth quarter demand surged to 332.9 tons—an increase of 54% year-over-year—as countries rapidly altered strategies to mitigate risks against the volatile economic landscape.

John Reade, WGC’s Chief Market Strategist, remarked that the most surprising aspect of demand was the unprecedented quantity of over 1000 tons acquired by central banks during the previous yearHe noted the vast and broad spectrum of purchases among central banks, indicating that the trend exceeded initial expectations for the year.

Furthermore, the report highlighted that global investment demand for gold reached its highest levels in four years, standing at 1179.5 tons—a 25% rise from 2023, primarily driven by stability in gold ETF holdings, which previously witnessed significant capital outflows over the past three years.

As we look ahead to 2025, analysts at WGC are optimistic about continued strong demand for gold from central banks, with ETF investors likely to join the fray as they compete for resources

Louise Street, WGC’s Senior Market Analyst, conveyed that should we see a reduction in interest rates, demand dynamics are expected to intensify significantlyFurthermore, geopolitical and macroeconomic uncertainties are poised to be predominant themes throughout the year, supporting gold’s appeal as a store of wealth and a hedge against risk.

In the realm of physical gold, demand for gold bars and coins in China reached 336 tons in 2024, reflecting a 20% increase from the previous year—the strongest annual performance since 2013. Conversely, demand for gold jewelry experienced a decline, totaling 479 tons for the year, down 24%—which in monetary terms translates to a value of approximately 261.5 billion yuan, a decrease of 7% year-on-year.

The World Gold Council anticipates that the demand for gold bars and coins will remain robust in China throughout 2025. Although jewelry consumption appears to be on a downward trend, the decline is projected to narrow, indicating potential recovery as market dynamics shift