The gold market is breaking records
The price of gold has exceeded $2,900 per troy ounce for the first time in history during trading last week, according to specialized publications that track trends in the global gold market. The growth of quotations is facilitated by geopolitical and macroeconomic uncertainty in the world, in which gold serves as the safest asset and a hedge against inflation.
According to the latest report from the World Gold Council (WGC), global demand for gold reached a record level in 2024, increasing by 1% compared to the previous year and amounting to 4,974.5 metric tons. The main factors for the growth in demand are: purchases by central banks, which for the third year in a row have acquired over 1,000 tons of gold, which indicates a continuing desire to diversify reserves and strengthen economic stability; investment demand for gold, which grew by 25%, reaching a four-year high; gold prices, which rose by 27% in 2024, which was the most significant increase since 2010, making gold one of the most profitable commodities.
At the same time, despite the overall increase in demand, the consumption of gold jewelry is declining, which is associated with high gold prices that have restrained consumers.
According to WGC estimates, gold prices last year updated records 40 times, and such outstanding price dynamics have persisted since the beginning of this year. According to experts' forecasts, in 2025, the continuing geopolitical and macroeconomic uncertainty will support demand for gold as a means of saving and hedging risks. Analysts suggest that gold prices could break through the psychological level of $3,000 per ounce by mid-2025. Thus, gold retains its attractiveness as a means of saving and protecting capital in the face of global instability.
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