4-11-2020
Global gold demand dropped 19 percent yoy to 892 tonnes in Q3, according to the World Gold Council (WGC) latest Gold Demand Trends report.
Demand for gold jewellery plummeted 29 percent due to a “combination of continued social distancing restrictions in many markets, the economic slowdown, and a record high gold price in many currencies”, commented Louise Street, the council’s lead analyst. The fall in demand was not dragged down by the growth in gold prices.
However, Q3 sees significant growth in investment demand 21 percent higher, compared to the same month last year. Gold has served as a safe-haven for retail investors as people continue to seek stability in volatile markets.
Commenting on the potential impact of 2020 United States presidential election, Andrew Naylor, WGC head of ASEAN said there would be some market reaction whoever wins, but in the short term, it is likely to be business as usual.
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