Global Gold Demand Falls Below 4,000 Tonnes for the First Time Since 2009, Due to COVID-19 Pandemic

NEVADA CITY, Calif. - April 1, 2023 - PRLog -- The COVID-19 pandemic has significantly impacted the global economy, resulting in job losses, reduced consumer spending, and a decrease in the demand for gold. In the fourth quarter of 2020, the demand for gold decreased by 28% year over year to 783.4 tonnes, the weakest period since Q2 2008. Annual demand for gold fell by 14% to 3,759.6 tonnes, the first time demand has fallen below 4,000 tonnes since 2009.

Although the pandemic has negatively impacted the demand for physical gold, it has had a positive effect on the demand for safe-haven assets, with increased investor demand leading to a rise in gold prices. Central banks have also increased their gold reserves to diversify their holdings and protect against currency fluctuations. Since the Russia-Ukraine conflict began in April, gold prices have surged nearly 18% to USD 2,050 per ounce.

Looking ahead, it is predicted that global gold mine production will grow by 3.1% year over year by the end of 2022, with a value of MOZ 120.7 Million Ounces. This is expected to result from the post-pandemic recovery and improvements in global demand. Canada is predicted to remain the largest contributor to gold mining growth worldwide in 2022, followed by Australia and China.

China, one of the major producers and consumers of gold globally, purchased more gold than both India and the US combined in 2016 due to the increasing number of upper-class population in the nation.

The impact of the pandemic on the demand for gold has been complex and varied, with both positive and negative effects. As the global economy continues to recover from the pandemic, it remains to be seen how the demand for gold will evolve in the future.

TO KNOW MORE:- Global Gold Mining Market Production and Consumption Outlook 2027 (https://www.makreo.com/report/global-gold-mining-market-o...)

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