Gold Positioned for Best Annual Performance in More Than a Decade, Up 28%

Gold is positioned to experience its best annual performance in more than a decade, up some 28%, according to the World Gold Council's recently released Gold Outlook 2025 report.

Gold is on track for its best annual performance in more than a decade, up some 28%, according to the World Gold Council’s recently released Gold Outlook 2025 report.

“Central bank and investor buying have more than offset a notable deceleration in consumer demand,” according to the trade association’s market analysis.

During calendar year 2024, the spot price for gold traded 22% higher than the previous calendar year, according to Gold Outlook 2025. The spot price of gold per troy ounce through the end of November 2024 averaged $2,366.

Gold reached 40 new record highs year to date, and total gold demand in the third quarter surpassed $100 billion in U.S. dollars for the first time, the report emphasized.

“Investment demand, especially through over-the-counter transactions, was supported by an undercurrent of geopolitical risk and volatility in many regional financial markets,” according to the market analysis. “Central banks continued to add gold to reserves year to date, with buying picking up speed in early October. And, for most of the third quarter, Western investors flocked back to gold as central banks started cutting interest rates.”

The world’s largest markets for gold are China and India. The Asian continent accounts for more than 60% of the world’s investment demand, excluding central banks.

“While central bank demand will likely end the year below previous records, it has remained strong, positively contributing to gold’s performance to the tune of 7% to 10%,” the report said.

“Equally, central banks will remain an important part of the puzzle. Central bank buying is policy driven and thus difficult to forecast, but our surveys and analysis suggest that the current trend will remain in place. In our view, demand in excess of 500 [metric] tonnes (the approximate long-term trend) should still have a net positive effect on performance. And we believe central bank demand in 2025 will surpass that.

“But a deceleration below that level could bring additional pressures to gold.”

To receive a free download of the complete analysis, register with the World Gold Council online at gold.org.