Gold Demand Hit Lowest Level in 11 Years: World Gold Council

SEATTLE (Scrap Monster): The World Gold Council (WGC) published Gold Demand Trends Report for fourth quarter and full-year 2020.

According to the report, the annual gold demand touched the lowest level in 11 years during the previous year. The demand fell by 14% over the previous year to 3,759.6 tonnes. This is the first time since 2009 that the demand has fallen below 4,000 tonnes. The Q4 gold demand of 783.4 tonnes was down from the previous year by almost 28%.

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The gold jewellery demand for the year totalled 1,411.6 tonnes, significantly down from the previous year by 34%. The quarterly demand, at 515.9 tonnes, reported year-on-year decline by 13%. The lockdowns on account of coronavirus pandemic, economic slowdown and high gold prices impacted the demand during the quarter. However, the demand reported notable recovery from bottom levels recorded in Q2 2020, WGC report said.

The annual retail investment surged 3% to 896.1 tonnes, though much lower when matched with the 10-year average of 1,195.5 tonnes. Meantime, bar and coin demand posted 10% jump in Q4.

The gold-backed exchange-traded funds (ETFs) witnessed record inflows in 2020. The global gold holdings grew by 877.1 tonnes during the year. However, the final quarter of 2020 recorded 130 tonnes of outflows. The yearly gold purchase by world central banks plunged 59% to 272.9 tonnes, with H2 witnessing sharp decline in buying activity.