Gold demand drops 14 %

According to data from the World Gold Council, gold demand fell to the lowest level since the 2008 financial crisis in the fourth quarter of 2020. The coronavirus pandemic, with its far-reaching effects, was the driving factor behind this weakness in consumer demand throughout 2020.

Full year figures show that the gold market shrank by around 14 percent compared to 2019. Demand from central banks fell particularly sharply (-59 percent), but the decline in the jewelry sector was also in the double-digits (-33 percent). The technology sector, impacted by disruption from COVID-19, saw gold usage decline 7% in 2020 to 301.9t. However, the year ended on a relatively positive note, with Q4 seeing marginal y-o-y growth to 84t.