Global gold demand dropped by 19% y-o-y to 892t in Q3, as consumers continued to feel the impact of the COVID-19 pandemic. This was the lowest quarterly total since Q3 2009. The Year-to-date demand of 2,972.1t was 10% lower versus the same period in 2019, according to the World Gold Council’s latest Gold Demand Trends report.
While overall demand declined, Q3 saw significant growth in investment demand which rose by 21% y-o-y. Investors globally bought 222.1t of gold bars and coins and an additional 272.5t through gold-backed ETFs. Year-to-date, gold ETFs have increased their holdings by a record 1,003.3t.However, the combination of continued social distancing restrictions in many markets, the economic slowdown, and a record high gold price in many currencies proved too much for many jewellery buyers. Demand declined by 29% y-o-y at 333t, down from an already relatively anaemic Q3 2019. While China and India accounted for the largest volume declines, weakness was global.
The key findings included in the latest Gold Demand Trends report for Q3 2020 are: Overall demand declined in Q3 by 19% year-on-year to 892t ; ETF inflows investors globally added 272.5t to their holdings, taking global holdings to a new record of 3,880t; Bar and coin demand increased significantly by 49% year-on-year to 222.1t ; Global jewellery demand improved from a record low in Q2, but declined by 29% year-on-year to 333t ; Central banks were net sellers of 12t the first quarter of net sales since 2010; Demand in the technology sector fell by 6% year-on-year to 76.7t ; and total supply declined 3% y-o-y.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough&Polished
