WGC: Global Gold Demand Recorded 1% Decline

SEATTLE (Scrap Monster): The latest Gold Demand Trends Report published  by the World Gold Council (WGC) states that global gold demand declined marginally by 1% during the previous year, despite gold-backed ETFs reporting record inflows. The annual gold demand totalled 4,355.7 tonnes in 2019.

According to WGC, the total gold demand fell 19% over the previous year to 1,045.2t in Q4 last year. This was mainly on account of huge declines reported by jewellery and physical bar demand due to elevated gold prices.

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The net holdings in gold-backed ETFs surged higher by 401.1t in 2019 to total 2,885.5t. Out of this, a total of 26.8t were added in Q4 ’19. The inflows hit record levels in Q3, as U.S. dollar prices rallied to a six-year high. The central bank gold purchases remained robust during the previous year. The gold reserves by central banks grew by 650.3t. The purchases totalled 109.6t in Q4.

The fall in global consumer demand for gold was mainly on account of high gold prices and slower economic growth. China and India together accounted for almost 80% of the decline in jewellery and retail investment demand in the last quarter of 2019.

Meantime, the total annual gold supply edged higher by 2% to 4,776.1t, mainly aided by 11% surge in recycling supply. The gold mine production recorded first annual decline in almost a decade, falling to 3,463.7t.