World Gold Jewellery Demand Plunged to Lowest Level in Nine Years

SEATTLE (Scrap Monster): The latest Gold Demand Trends Report published by the World Gold Council (WGC) says that global gold jewellery demand was badly impacted by higher gold prices during the third quarter of the current year.

The Q3 ’19 gold jewellery demand plunged 16% over the previous year to 460.9 tonnes. This compares with the demand of 546.2 tonnes in the same quarter a year before. The demand hit the lowest level since Q2 2010. Fresh jewellery purchases by consumers witnessed sharp decline as gold price rally gained further momentum during the quarter, WGC noted.

Most markets in Asian and Middle East region reported significant year-on-year declines in gold jewellery demand.

The Indian demand plunged by 32% from 148.8 tonnes to 101.6 tonnes, mainly driven by concerns around economic slowdown in the country, which dampened urban as well as rural consumer sentiment. The recent hike in customs duty on gold imports to 12.5% also contributed to the downtrend.

The Chinese gold jewellery demand fell by 12% to 156.3 tonnes, as compared with 176.6 tonnes in Q3 last year. The double-digit year-on-year decline in demand for 24k gold jewellery impacted the overall demand. The National Day holiday season in October failed to boost demand for traditional jewellery in the country.

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The jewellery demand across the Middle East recorded 12% decline to 35.3 tonnes. Nearly all markets except Turkey and Iran witnessed significant demand decline. The demand dropped in smaller Asian markets as well, WGC Gold Trends Report said.

The European demand fell marginally, whereas the U.S. demand inched higher by 1% to total 28.5 tonnes.