Global gold demand slumps in 2020 due to COVID-19: report

January 31, 2021 | Updated 3:44 pm

Global gold demand slumps in 2020 due to COVID-19: report A saleswoman displays gold bracelets at a jewelry shop in Yangon, (Xinhua)

New Delhi: The ongoing pandemic has had an impact on all the sectors of the economy alike, why would it be any different for the gold sector? Global demand for gold slumped in 2020 due to the impact of the COVID-19 pandemic, the World Gold Council (WGC) said in a report.

Last year, global gold demand declined 14 per cent year on year to 3,759.6 tonnes, its lowest level since 2009, according to the WGC.

Demand for gold jewellery plunged 34 per cent from the previous year to 1,411.6 tonnes, reaching a historic low.

In contrast, rising economic uncertainty amid COVID-19 fueled safe-haven investment demand for the yellow metal.

The report showed that gold investment surged 40 per cent to 1,773.2 tonnes in 2020, with the inflow of gold-backed exchange-traded funds (ETFs) hitting 877.1 tonnes.

The demand for gold bars and coins rose 3 per cent year on year to 896.1 tonnes. In 2020, the global gold supply dropped 4 per cent to 4,633 tonnes, according to the WGC

(With Xinhua inputs)