In the first quarter of 2024, global gold demand surged to 1,238 tons, marking a 3% year-on-year increase and recording the strongest first-quarter demand for the precious metal since 2016. According to the latest data from the World Gold Council, this growth was driven primarily by a 3% rise in investment gold purchases, including bars and coins, and a 1% increase in central bank acquisitions.

The gold price experienced significant volatility at the beginning of the year, climbing from approximately $2,020 per ounce in February to nearly $2,430 by May 21. Although a correction followed, the price has since stabilized around $2,300 per troy ounce over the past month.

China, India, and Turkey emerged as the top gold buyers in early 2024. The People’s Bank of China increased its gold reserves by 270.6 tons, reaching a total of 2,262.4 tons by the end of the first quarter. This follows a remarkable 112% growth in 2023, the highest annual increase in China’s gold reserves since 1977. Turkey’s central bank added 301.2 tons to its reserves, now totaling 570.3 tons, marking the third consecutive quarterly increase. India saw a significant rise in its gold reserves by 18.5 tons, totaling 822.1 tons, the largest quarterly increase since Q3 2021.

Poland stood out as Europe’s largest gold buyer, with the central bank’s reserves growing by 130 tons in 2023 to 359 tons, reflecting a 569% increase. The central bank aims to raise this figure to 20% of its total reserves by 2025. Despite a slower pace in Q1 2024 with 11.9 tons added, future acceleration in purchases is expected.

Romania holds approximately 545 grams of gold per capita, placing it 39th globally in gold reserves, with a total of 103.6 tons. In contrast, Poland has 975 grams per capita. Romania’s last significant change in gold reserves occurred in October 2007, when it sold one ton of gold.

“Global demand dynamics for investment gold are logically behind the significant increase in recent months, both institutionally from central banks and individually from consumers for savings,” said Victor Dima, Treasury Department Manager at Tavex Romania.

Share

Share