Demand for gold jewellery fell 11 per cent year over year in 2024 as soaring prices battered volumes but drove value to record levels, the World Gold Council (WGC) said.

In its latest Gold Demand Trends report, the council said overall demand dipped to 1,877.1 tonnes from 2,110.6t in 2023. Fourth-quarter figures were also down, setting the seal for a “very weak year” for global gold jewellery demand. Record-high gold prices impacted affordability, added WGC.

Industry data showed gold prices reached US$2,891.50 per ounce as of February 12, 2025, up 44.85 per cent from US$1,996.10/oz around the same period in 2024. At the start of 2024, prices hovered around US$2,067.55/oz.

Major markets China and India saw year-on-year declines of 24 per cent and 2 per cent, respectively. While “weakness was global,” WGC said India’s decline showed resilience compared with China's.

In contrast to the 11 per cent overall decline, WGC said the sharp rise in gold prices during the year saw the value measure of jewellery demand shoot up to a record US$144 billion, representing a 9 per cent uptick. 

“By far the largest contributor to the weakness in volume was China, which, for the second time in three years, ceded its position to India as the largest jewellery market,” noted the council.

Persisting challenges in China

According to WGC, a combination of poor consumer confidence amid declining income growth and surging gold prices adversely affected Chinese jewellery demand in 2024. Especially hit was the retail sector, with stores closing throughout the year.

Demand picked up in December ahead of the calendar New Year and Spring Festival, but the outlook remains pessimistic, given China’s slowing economy, and the shift towards lighter-weight items, noted WGC.

To protect margins, retailers are highlighting higher value-added products while major brands are developing exclusive special collections to stand out from competitors. Meanwhile, fashionable designs integrating gold with alternative colourful materials including gems, enamel and even feathers, are attracting young consumers.

“Looking ahead, with gold prices having reached a fresh record high in early 2025, we expect Chinese gold jewellery demand to remain weak, albeit the rate of decline will likely slow,” added WGC. 

Resilience in India

India’s gold jewellery market continued to demonstrate grit amid challenging times. According to WGC, the fact that annual demand only shrank by 2 per cent during a year in which gold prices reached multiple record highs is testament to the resilience of gold jewellery demand in India.

This highlights both the strength of the response to a cut in gold import duties last July and the country’s relatively healthy economic growth. Fourth-quarter demand peaked between late October – peak Diwali festival buying season – and November, when gold prices corrected coinciding with the onset of the wedding season.

Demand however remained lacklustre due to high and fluctuating prices. “We expect gold jewellery demand to recover gradually from mid-January, driven by wedding-related buying, although this would also require an element of price stability. Any periods of volatility in the gold price would be expected to curb demand,” the council said.