Gold Demand by Industry: 2024 Review and Outlook for 2025–2026
Gold demand worldwide surged to new highs in 2024, revealing significant shifts in how various industries are utilizing gold compared to previous years. Drawing on the latest data from Statista and the World Gold Council, this article provides an in-depth sector-by-sector analysis of gold demand in 2024, and offers a forward-looking perspective for 2025 and 2026. For broader context on market volatility and supply/demand cycles, see our Gold Blog.
Jewelry Gold Demand: Navigating Price Pressures and Evolving Consumer Preferences
Jewelry remains the largest single sector for gold demand, accounting for approximately 44% of global demand in 2024, or about 2,012 metric tonnes. However, the story of jewelry gold demand in 2024 is one of both resilience and challenge. The sector experienced an 11% decline in volume year-on-year, with total jewelry demand falling to 1,877 tonnes. This contraction was largely driven by a sharp rise in gold prices, which reached an average of $2,386 per ounce—up 23% from 2023. As gold became more expensive, many consumers, particularly in price-sensitive markets such as India and China, reduced their purchases or shifted to lighter, lower-carat pieces.
Despite the decline in volume, the total value of gold jewelry sales actually rose by 9% to $144 billion. This paradox—lower volume but higher value—reflects a shift in consumer behavior, with buyers opting for fewer but more valuable pieces. In regions like the Middle East and Southeast Asia, demand remained relatively robust, buoyed by cultural traditions and the role of gold jewelry as both adornment and investment. In contrast, Western markets saw a greater emphasis on design innovation and branded collections, with consumers gravitating toward unique, contemporary styles.
Looking ahead to 2025 and 2026, the outlook for jewelry gold demand is closely tied to price trends and economic sentiment. Should gold prices stabilize or retreat from current highs, a rebound in volume is likely, particularly in emerging markets where gold jewelry is deeply embedded in cultural and financial practices. However, if prices remain elevated, the sector may continue to see a bifurcation: affluent consumers will drive demand for high-value, designer pieces, while mass-market demand could remain subdued. Sustainability and ethical sourcing are also becoming increasingly important, with more consumers seeking assurances that their gold jewelry is responsibly produced. As a result, brands that prioritize transparency and traceability in their supply chains may gain a competitive edge in the years ahead. For more on industry adaptation and market strategies, visit our article on Mastering the Gold Market Amid Soaring Prices.
Investment Gold Demand: A Safe Haven in Times of Uncertainty
Investment gold demand was the standout growth story of 2024, surging 25% to reach a four-year high of 1,180 tonnes. This sector, which includes gold bars, coins, and exchange-traded funds (ETFs), accounted for roughly 24% of global gold demand. The resurgence in investment demand was driven by a confluence of factors: persistent inflation, geopolitical instability, and a global search for safe-haven assets amid volatile financial markets. Retail investors in China, India, and Europe turned to physical gold as a hedge against currency depreciation and economic uncertainty, while institutional investors increased their allocations to gold-backed ETFs.
Notably, the ETF segment stabilized in 2024 after three consecutive years of outflows. Renewed investor confidence, combined with a supportive macroeconomic environment, led to net inflows in several major markets. Bar investment grew significantly, reflecting strong demand for physical gold among both retail and high-net-worth investors. Coin demand, on the other hand, saw a modest reduction, as some investors took profits amid high prices.
Looking forward to 2025 and 2026, the outlook for investment gold demand remains robust. Major financial institutions, including Goldman Sachs and UBS, project gold prices could reach $3,700–$4,000 per ounce by 2026, underpinned by ongoing central bank accumulation and persistent geopolitical risks. If these forecasts materialize, investment demand could set new records as investors seek to preserve wealth and diversify portfolios. In addition, the growing popularity of digital gold platforms and tokenized gold products may further expand the investor base, making gold more accessible to a new generation of buyers. For those interested in secure and compliant ways to manage gold investments.>Precious Metals Account Management Guide is a valuable resource.
Technology Gold Demand: Powering the Digital and Green Revolutions
Technology gold demand grew by 7% in 2024, reaching approximately 321 tonnes and representing about 7% of global demand. Gold's unique properties—such as high electrical conductivity, resistance to corrosion, and malleability—make it indispensable in a range of high-tech applications. In 2024, the expansion of artificial intelligence, 5G infrastructure, and advanced electronics manufacturing drove increased gold usage in semiconductors, connectors, and microchips. The medical sector also contributed to this growth, with gold used in diagnostic devices, dental alloys, and cancer treatments.
The shift toward green technologies is another important driver. Gold is increasingly used in renewable energy applications, such as photovoltaic cells for solar panels and catalytic converters for cleaner vehicles. As governments and corporations invest in decarbonization and digital transformation, demand for gold in technology is expected to continue its upward trajectory through 2025 and 2026. The World Gold Council notes that while technology remains a smaller share of total gold demand compared to jewelry and investment, its growth rate is among the fastest, reflecting gold's critical role in the modern economy.
Looking ahead, the technology sector's gold demand is likely to benefit from several trends: the proliferation of smart devices, the rollout of next-generation communications networks, and the integration of gold-based components in emerging fields like quantum computing and biosensors. Supply chain resilience and recycling will also be key themes, as manufacturers seek to secure reliable sources of gold and reduce environmental impact. For consulting on mining, sourcing, and technology supply chain solutions, see our Comprehensive Mining Solutions.
Central Bank Gold Demand: A Structural Force in the Market
Central banks continued their historic gold buying spree in 2024, purchasing over 1,000 tonnes for the third consecutive year. This sector accounted for approximately 20% of global gold demand and played a pivotal role in supporting prices and market stability. The acceleration of central bank buying in Q4 2024, with 333 tonnes added in that quarter alone, underscores the growing importance of gold as a reserve asset.
The motivations behind central bank gold demand are multifaceted. In an era of rising geopolitical tensions, economic sanctions, and shifting global alliances, gold offers a non-sovereign, highly liquid asset that can help diversify reserves and reduce reliance on the US dollar. Emerging markets, in particular, have been at the forefront of this trend, with countries like Poland, India, and China leading the way in new purchases. For these nations, gold serves as both a store of value and a tool for enhancing financial sovereignty.
Looking to 2025 and 2026, central bank gold demand is widely expected to remain strong. Analysts suggest that as long as global uncertainties persist and the dollar's dominance is questioned, official sector purchases will continue to provide a stable foundation for the gold market. For a deep dive into compliance, risk, and regulatory reporting for gold companies, read our Regulatory Reporting Obligations for Gold Companies 2025.
Gold Demand by Sector: 2023 vs. 2024 Comparison
| Sector | 2023 Demand (tonnes) | 2024 Demand (tonnes) | % Change | 2024 Share |
|---|---|---|---|---|
| Jewelry | ~2,100 | 2,012 | -11% | 44% |
| Investment | ~944 | 1,180 | +25% | ~24% |
| Technology | ~300 | ~321 | +7% | 7% |
| Central Banks | >1,000 | >1,000 | Stable | ~20% |
Key Gold Demand Takeaways and Strategic Insights for 2025–2026
- Jewelry gold demand is sensitive to price and economic sentiment, with potential for recovery if prices stabilize.
- Investment gold demand is likely to remain robust amid ongoing uncertainty and bullish price forecasts.
- Technology gold demand is set to grow further as digitalization and green technologies expand.
- Central bank gold demand will continue to provide a stable foundation for the global gold market.
Understanding these evolving trends in gold demand is essential for businesses, investors, and policymakers as they navigate the opportunities and challenges of the gold market in 2025 and beyond. For more sector news, strategies, and expert commentary, visit our Precious Metals News & Events.
Spencer Campbell
Director SE Asia Consulting - Precious Metals Consultant
