According to the World Gold Council (WGC), global demand for gold surged to an unprecedented 4974 tons last year, marking a significant milestone in the precious metal’s market. This surge is anticipated to persist throughout the current year, fueled by ongoing geopolitical tensions which enhance gold’s status as a safe haven during financial market uncertainties.
The current price of a troy ounce of gold (31.1 grams) stands at approximately $2,870, with predictions of a continued climb toward the $3,000 mark. This rise in gold prices is partly attributed to the substantial purchases by central banks, which acquired over 1,000 tons of gold in the previous year. Investors are also showing increased interest, primarily in gold ingots, as a secure investment option.
In addition to these factors, the technology sector is increasingly utilizing gold for its applications in advanced chips, particularly those designed for artificial intelligence (AI), further contributing to the robust demand for the precious metal.