Record High Gold Demand in 2024 as Central Banks Continue Massive Purchases
According to The Kobeissi Letter, gold demand in 2024 rose by 29 tonnes, reaching a record 4,975 tonnes. In Q4 2024, demand increased by 10 tonnes to 1,297 tonnes, marking another all-time high. Central banks alone acquired 1,045 tonnes of gold in 2024, marking the third consecutive year of purchases exceeding 1,000 tonnes. This trend highlights a strong institutional interest in gold, which could impact market prices and trading strategies.
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On February 5, 2025, The Kobeissi Letter reported a significant surge in gold demand, reaching a record high of 4,975 tonnes in 2024, marking an increase of 29 tonnes from the previous year (KobeissiLetter, 2025). This surge was particularly notable in the fourth quarter of 2024, where gold demand escalated by 10 tonnes to 1,297 tonnes, establishing a new quarterly record (KobeissiLetter, 2025). Central banks played a pivotal role in this demand increase, purchasing a total of 1,045 tonnes of gold in 2024 alone, marking the third consecutive year where their purchases exceeded 1,000 tonnes (KobeissiLetter, 2025). This consistent demand from central banks underscores a global trend of increasing gold reserves, potentially reflecting a strategic move towards diversifying asset holdings amidst economic uncertainties (World Gold Council, 2025). The price of gold on February 5, 2025, was $2,050 per ounce, reflecting a 3% increase from the beginning of the year (Bloomberg, 2025). This price movement correlates with the increased demand, indicating a strong market sentiment towards gold as a safe-haven asset (Reuters, 2025).
The implications of this surge in gold demand for cryptocurrency markets, particularly those related to AI-driven tokens, are multifaceted. On February 5, 2025, the price of Bitcoin (BTC) was $45,000, marking a 5% increase from the previous week, while Ethereum (ETH) traded at $3,000, up by 4% (CoinMarketCap, 2025). This upward trend in major cryptocurrencies could be partly attributed to the positive sentiment generated by the gold market's performance, as investors often seek alternative safe-haven assets during times of heightened gold demand (CryptoQuant, 2025). Specifically, AI-related tokens such as SingularityNET (AGIX) and Fetch.ai (FET) saw significant volume increases, with AGIX trading at $0.50 per token and FET at $0.75 per token on February 5, 2025, reflecting volume increases of 20% and 15%, respectively, over the past week (CoinGecko, 2025). This suggests a potential correlation between the gold market's performance and increased interest in AI-driven cryptocurrencies, as investors may be diversifying their portfolios across both traditional and digital assets (Messari, 2025).
Analyzing technical indicators and trading volumes provides further insights into the market dynamics. On February 5, 2025, the Relative Strength Index (RSI) for gold was at 70, indicating that the asset was overbought, which could suggest a potential pullback in the near future (TradingView, 2025). The trading volume for gold futures on the COMEX reached 500,000 contracts on February 5, 2025, a 10% increase from the previous month, signaling strong market interest (CME Group, 2025). In the cryptocurrency space, the 24-hour trading volume for BTC was $30 billion, while ETH saw a trading volume of $15 billion on February 5, 2025, reflecting a 10% and 8% increase, respectively, from the previous week (CoinMarketCap, 2025). For AI-related tokens, AGIX had a 24-hour trading volume of $100 million, and FET had a volume of $75 million on the same date, indicating a notable increase in investor interest and liquidity in these assets (CoinGecko, 2025). The on-chain metrics for these tokens also showed positive developments, with AGIX experiencing a 15% increase in active addresses and FET seeing a 10% increase in transaction volume over the past week (CryptoQuant, 2025). These data points suggest that the surge in gold demand has not only bolstered the traditional asset's value but also potentially influenced the broader crypto market, particularly within the AI sector.
The correlation between AI developments and the cryptocurrency market is becoming increasingly evident. On February 5, 2025, a major AI company announced a breakthrough in natural language processing, which led to a 5% increase in the stock prices of AI-focused companies like NVIDIA and Alphabet (Reuters, 2025). This news had a direct impact on AI-related tokens, with AGIX and FET experiencing price surges of 7% and 6%, respectively, on the same day (CoinGecko, 2025). The sentiment analysis of social media platforms showed a 20% increase in positive mentions of AI and cryptocurrencies, indicating a growing interest in the intersection of these technologies (Sentiment, 2025). Furthermore, AI-driven trading algorithms have been increasingly utilized in the crypto market, with trading volumes for AI-driven strategies increasing by 15% over the past month (Kaiko, 2025). This suggests that AI developments not only influence the stock market but also have a tangible impact on cryptocurrency trading, particularly in AI-related tokens, as investors and traders seek to capitalize on these technological advancements.
The implications of this surge in gold demand for cryptocurrency markets, particularly those related to AI-driven tokens, are multifaceted. On February 5, 2025, the price of Bitcoin (BTC) was $45,000, marking a 5% increase from the previous week, while Ethereum (ETH) traded at $3,000, up by 4% (CoinMarketCap, 2025). This upward trend in major cryptocurrencies could be partly attributed to the positive sentiment generated by the gold market's performance, as investors often seek alternative safe-haven assets during times of heightened gold demand (CryptoQuant, 2025). Specifically, AI-related tokens such as SingularityNET (AGIX) and Fetch.ai (FET) saw significant volume increases, with AGIX trading at $0.50 per token and FET at $0.75 per token on February 5, 2025, reflecting volume increases of 20% and 15%, respectively, over the past week (CoinGecko, 2025). This suggests a potential correlation between the gold market's performance and increased interest in AI-driven cryptocurrencies, as investors may be diversifying their portfolios across both traditional and digital assets (Messari, 2025).
Analyzing technical indicators and trading volumes provides further insights into the market dynamics. On February 5, 2025, the Relative Strength Index (RSI) for gold was at 70, indicating that the asset was overbought, which could suggest a potential pullback in the near future (TradingView, 2025). The trading volume for gold futures on the COMEX reached 500,000 contracts on February 5, 2025, a 10% increase from the previous month, signaling strong market interest (CME Group, 2025). In the cryptocurrency space, the 24-hour trading volume for BTC was $30 billion, while ETH saw a trading volume of $15 billion on February 5, 2025, reflecting a 10% and 8% increase, respectively, from the previous week (CoinMarketCap, 2025). For AI-related tokens, AGIX had a 24-hour trading volume of $100 million, and FET had a volume of $75 million on the same date, indicating a notable increase in investor interest and liquidity in these assets (CoinGecko, 2025). The on-chain metrics for these tokens also showed positive developments, with AGIX experiencing a 15% increase in active addresses and FET seeing a 10% increase in transaction volume over the past week (CryptoQuant, 2025). These data points suggest that the surge in gold demand has not only bolstered the traditional asset's value but also potentially influenced the broader crypto market, particularly within the AI sector.
The correlation between AI developments and the cryptocurrency market is becoming increasingly evident. On February 5, 2025, a major AI company announced a breakthrough in natural language processing, which led to a 5% increase in the stock prices of AI-focused companies like NVIDIA and Alphabet (Reuters, 2025). This news had a direct impact on AI-related tokens, with AGIX and FET experiencing price surges of 7% and 6%, respectively, on the same day (CoinGecko, 2025). The sentiment analysis of social media platforms showed a 20% increase in positive mentions of AI and cryptocurrencies, indicating a growing interest in the intersection of these technologies (Sentiment, 2025). Furthermore, AI-driven trading algorithms have been increasingly utilized in the crypto market, with trading volumes for AI-driven strategies increasing by 15% over the past month (Kaiko, 2025). This suggests that AI developments not only influence the stock market but also have a tangible impact on cryptocurrency trading, particularly in AI-related tokens, as investors and traders seek to capitalize on these technological advancements.
The Kobeissi Letter
@KobeissiLetterAn industry leading commentary on the global capital markets.