Following a nearly 1% rise on the previous trading day, on February 5th, international gold prices once again reached a historic high, with gold concept stocks and gold ETFs also strengthening. According to the latest data from the World Gold Council, the total demand for gold in 2024 refreshed the record set in 2023, with a significant increase in demand from the technology sector.
As of the evening of February 5th, the spot gold price in London surpassed $2869 per ounce, and COMEX gold futures prices also broke through $2899 per ounce, marking an approximate 40% increase compared to the same period last year, thus setting another historical record. Simultaneously, domestic retail gold prices rose in tandem, with brands like Chow Tai Fook and Laofengxiang seeing prices for pure gold jewelry exceed 860 yuan per gram. Driven by the rise in gold prices, gold concept stocks and gold ETFs saw significant gains. According to Tonghuashun IFinD data, on February 5th, the gold concept sector rose by over 1%, with Wolong Real Estate hitting the daily limit, Chifeng Gold rising over 8%, Yulong Shares and Xiaocheng Technology both gaining 7%, and major stocks like Shandong Gold and China National Gold increasing by over 5%. On the ETF side, Huaan Gold ETF rose more than 3%, and Huaxia CSI Shanghai-Shenzhen-Hong Kong Gold Industry Stock ETF increased by over 4%.
As for the reasons behind the rise in gold prices, market analysts believe that, on one hand, the continuous rise in risk aversion sentiment highlighted the safe-haven attributes of gold. According to the latest U.S. employment report, a gradual slowdown in the labor market led to a significant drop in the dollar, thereby supporting gold prices. On the other hand, global central banks have continued to purchase gold, with buying volumes exceeding 1,000 tons for the third consecutive year. Specifically, the diverse forex reserve strategies of emerging market countries such as China and India have further provided long-term support for gold prices.
In the context of frequently reaching new highs, global gold demand also set a new record. According to data from the World Gold Council, the total global demand for gold in 2024 reached 4,974 tons, surpassing the record set in 2023. Notably, the demand for gold in the technology sector saw significant growth, with total demand reaching 326 tons in 2024, a year-on-year increase of 7%. This growth was mainly driven by the rapid development of artificial intelligence technology and the continuous rise in demand for gold in electronic product manufacturing, especially in the fourth quarter, where demand reached 84 tons.
Moreover, investment demand for gold in 2024 also hit a four-year high, reaching 1,180 tons, a year-on-year increase of 25%. Although the total demand for gold bars and coins remained flat with 2023 at 1,186 tons, the internal composition changed, with an increase in bar purchases and a decrease in coin purchases. In the domestic market, the investment demand for gold bars and coins in the first three quarters of 2024 reached 253 tons, the highest since 2013. The World Gold Council expects that although the growth rate of domestic demand for gold bars and coins might slow in 2025, it will still maintain a healthy pace of growth.
Gold-themed ETFs have also become an investment hotspot this year. Global gold ETFs experienced their first annual net inflow in four years, reaching $3.4 billion. Domestic investors’ demand for gold ETFs surged, attracting 31 billion yuan throughout the year, setting a historic high. The total assets under management of China’s gold ETFs soared by 150% in 2024, with holdings growing by 87%. These figures indicate that the appeal of gold as an asset allocation tool is continuing to strengthen.
