Global gold demand predicted to hit record high in 2024

Overall gold demand globally grew by around 3 percent to 4,899 tonnes in 2023, primarily driven by strong demand in the over-the-counter market. Reuters/File
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Updated 31 January 2024
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Global gold demand predicted to hit record high in 2024

RIYADH: The demand for gold globally hit a record high last year, and it is expected to continue to surge in 2024, according to an industry body. 

The World Gold Council made this projection by assuming that the Federal Reserve will move toward cutting interest rates, potentially aiding prices. 

According to the report, overall gold demand globally grew by around 3 percent to 4,899 tonnes in 2023, primarily driven by strong demand in the over-the-counter market. 

However, annual gold demand excluding OTC fell by 5 percent in 2023 to 4,448 tonnes. 

The central bank buying spree also maintained momentum in 2023, with annual net purchases hitting 1,037 tonnes, just 45 tonnes below compared to 2022. 

Louise Street, a senior market analyst at WGC, said: “Unwavering demand from central banks has been supportive of gold demand again this year and helped offset weakness in other areas of the market, keeping 2023 demand well above the 10-year moving average.” 

He added: “In addition to monetary policy, geopolitical uncertainty is often a key driver of gold demand and in 2024 we expect this to have a pronounced impact on the market.”

Furthermore, Street pointed out that trade tensions and over 60 elections taking place around the world will also encourage investors to choose gold as a safe haven asset in 2024. 

According to the report, bar and coin investment fell slightly by 3 percent year on year in 2023, while jewelry consumption inched up by 3 tonnes despite higher prices, supported by a rebound in Chinese demand.

Mine production was relatively flat in 2023, up 1 percent compared to 2023.

On the other hand, gold recycling increased by 9 percent, which was lower than expected, the report added. 

In 2024, WGC expects total investment in gold to rise even higher. 

Highlighting the positive outlook for 2024, Street said: “We know that central banks often cite gold’s performance in times of crisis as a reason to buy, which suggests demand from this sector will stay high this year and may help to offset a slowdown in consumer demand due to elevated gold prices and slowing economic growth.” 


Saudization rates in marketing, sales professions announced

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Saudization rates in marketing, sales professions announced

RIYADH: Saudi Arabia’s Ministry of Human Resources and Social Development has announced the issuance of two decisions to increase Saudization rates in marketing and sales professions.

This comes as part of the ministry’s efforts to enhance the participation of national talent in the labor market, raise the level of Saudization in specialized professions, and provide stimulating and productive job opportunities for Saudi citizens across the Kingdom.

The first decision stipulates raising the Saudization rate to 60 percent in marketing professions in the private sector, effective Jan. 19, 2026. It applies to establishments with three or more employees in marketing professions, with a minimum wage of SR5,500 ($1,466). 

The targeted professions include: marketing manager, advertising agent, and advertising manager, as well as graphic designer, advertising designer, and public relations specialist. They also include advertising specialist and marketing specialist, as well as public relations manager and photographer.

The decision will be implemented three months after the announcement date to allow establishments sufficient time to prepare and implement it.

The second decision stipulates raising the Saudization rate to 60 percent in sales positions within the private sector, effective Jan. 19, 2026. This applies to establishments with three or more employees in sales roles, including: sales manager, retail sales representative, and wholesale sales representative as well as sales representative, IT and communications equipment sales specialist, and sales specialist. They also include a commercial specialist and a goods broker.

The decision will take effect three months after the announcement date to allow targeted establishments time to fulfill the requirements and achieve the Saudization target.

The entity clarified that private sector establishments will benefit from a package of incentives offered by the Ministry of Human Resources and Social Development, including support for recruitment, training and development, and employment, as well as job stability and priority access to Saudization support programs and programs of the Human Resources Development Fund.

The ministry also confirmed that its decision to raise Saudization rates in marketing and sales professions was based on analytical studies of labor market needs, in line with the number of job seekers in related specializations and the current and future requirements of the sales and marketing sectors.

It noted that implementing these decisions would enhance the attractiveness of the labor market, contribute to increasing quality job opportunities, and promote job stability for Saudi nationals.

The ministry further published the procedural guide for the two decisions on its website, which includes details of the targeted professions, the mechanisms for calculating Saudization rates, and the required compliance steps.

It urged all covered establishments to comply with the implementation to avoid penalties and to take advantage of the grace period provided for preparation and fulfillment of the requirements.