By: RadhakrishnaNS
Global gold demand declined by 19 per cent during the July-September quarter to 892.3 tonnes, the lowest quarterly total since Q3 of 2009, due to coronavirus-induced disruption, World Gold Council (WGC) said in a report.
The total global demand during July-September 2019, stood at 1,100.2 tonnes, according to WGC’s Q3 Gold Demand Trends’ report.
Though the overall demand declined during the third quarter of this year, there was a significant growth in investment demand, the report said.
The overall investment demand grew by 21 per cent at 494.6 tonnes as investors globally bought 222.1 tonnes of gold bars and coins and an additional 272.5 tonnes through gold-backed ETFs (electronically traded funds).
Year-to-date, gold ETFs have increased their holdings by a record 1,003.3 tonnes, it added. In the third quarter of 2019, the overall investment demand stood at 408.1 tonnes, out of which 149.4 tonnes was for bars and coins and 258.7 tonnes for ETF.
However, the combination of continued social distancing restrictions in many markets, economic slowdown, and a record high gold price in many currencies weighed on jewellery buyers.
This led to a 29 per cent decline in jewellery demand to 333 tonnes, which has been already declining since the third quarter of 2019, when it was at 468.1 tonnes, the report pointed out.
“The impact of COVID-19 is still being felt in the gold market across the world. The combination of continued social restrictions in many markets, the economic impact of lockdowns, and all-time high gold prices in many currencies proved too much for many jewellery buyers. We believe that this trend will likely continue for the foreseeable future,” Louise Street, Market Intelligence at the World Gold Council, commented.
