Central bank demand maintained its momentum in the fourth quarter with a further 229 tonnes added to global official Gold reserves, as shown by data from the World Gold Council. This lifted annual net demand to 1,037 tonnes – just short of the record set in 2022 of 1,082 tonnes – as reserve diversification and geopolitical concerns pushed central banks to increase their allocation towards safe assets. The People’s Bank of China and the National Bank of Poland were the driving forces.

Gold tends to become more attractive in times of instability and demand has been surging over the past two years. We believe this is likely to continue this year amid geopolitical tensions and the current economic climate.