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World Gold Council expects stable demand for gold next year

Bankruptcy of the US-based Silicon Valley Bank and aggravation of the situation in the Middle East are the most significant global events scaling up the demand for gold, WGC believes

MOSCOW, December 8. /TASS/. The global demand for gold will remain stable in 2024 because of the continuing geopolitical uncertainty and the rise in purchases by central banks of countries, the World Gold Council (WGC) says in its report.

Central banks of the world provided for the rise in gold demand in 2023 and its price edged up by 10% and more. They are likely to continue buying next year, WGC noted.

"Even if 2024 does not reach the same highs as the previous two years, we anticipate that any above-trend buying (i.e. more than 450-500 metric tons) should provide an extra boost," the report indicated.

Bankruptcy of the US-based Silicon Valley Bank and aggravation of the situation in the Middle East are the most significant global events scaling up the demand for gold, WGC believes.

"Geopolitics added between 3% and 6% to gold’s performance. And in a year with major elections taking place globally, including in the US, the EU, India, and Taiwan, investors’ need for portfolio hedges will likely be higher than normal," the Council added.

In early December 2023, gold prices climbed above $2,100 per Troy ounce during the trading session at Comex.