Gold: Global demand hit 11-year low in 2020 amid covid crisis – WGC
Demand for gold globally slumped to an 11-year in 2020 as the coronavirus pandemic triggered a dip in jewelry sales and central banks buying, the World Gold Council (WGC) said in its latest quarterly report released Thursday.
Key takeaways
“Global demand for gold fell to 3,759.6 tonnes last year, down 14% from 2019 and the first year below 4,000 tonnes since 2009.”
“The year ended on a weak note, with demand over October to December at 783.4 tonnes, down 28% year-on-year and the lowest of any quarter since 2008.”
“Investors bought 1,773.2 tonnes last year, up 40% from 2019 and the most for any year on record. At current prices of around $1,850 an ounce, that gold is worth some $100 billion.“
“Exchange-traded funds (ETFs) holding gold for larger investors added a record 877.1 tonnes to their stockpile, but those inflows reversed late in the year as money flowed back to assets that benefit from economic growth.”
“Central banks bought 273 tonnes of gold in 2020, down 59% from 2019, with purchases falling sharply in the second half of the year.”
Related reads
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
