Gold: Global demand dropped by 1% in 2019 – WGC
The latest quarterly Gold Demand Trends report released by, the World Gold Council (WGC) on Thursday showed, higher gold prices kept the retail consumers away that led to a dip in the global demand for the yellow metal in 2019.
The report, however, showed that India's gold demand will reach 700-800 tons in the calendar year 2020 after having dropped by 9% to 690.4 tons in the previous year due to rising prices.
“Prices surged 18% last year to the highest since 2013 as global economic growth slowed.
But higher gold prices, which hit record levels in some currencies, dampened interest in gold jewellery and retail bars and coins.
Global demand for gold was 4,355.7 tonnes last year, down 1% from 2018’s 4,401 tonnes.
Demand over October-December at 1,045.2 tonnes dropped by 19% from the same period in 2018.
For the full year, use of gold for jewellery fell 6% to 2,107 tonnes, with consumption falling 9% in India and 8% in China – the two largest markets.
Purchases of gold bars and coins declined by 10% in India and 31% in China, pulling total global demand down 20% to 870.6 tonnes.
Central banks and other sovereign entities bought 650.3 tonnes of gold last year, just 5.9 tonnes less than 2018's more than 50-year high of 656.2 tonnes.
Holdings of gold in exchange-traded funds increased by 401.1 tonnes last year compared to a 76.2-tonne increase in 2018.
On the other side of the market, global gold supply rose 2% to 4,776.1 tonnes last year, thanks to an 11% increase in recycling.”