“The sharp rise in gold prices in the second half of the year led to a reduction in global demand for jewelry,” the report states.
One of the largest gold jewelry markets – China and India – has influenced demand.
Demand in China in 2019 decreased by 7% to 637.3 tons. Slowing economies, rising inflation, global trade disputes, rising gold prices and a shift in the tastes of the younger generation towards lighter, trendy jewelry have contributed to lower demand in 2019.
Demand in India fell by 9% to 544.6 tons.
In general, the amount that consumers in the world spent on gold increased in 2019. In dollar terms, the demand for gold jewelry grew by 3% to a five-year high of $ 94.3 billion. This was largely due to a 9% increase in demand in the fourth quarter (year to year), which reached $ 27.8 billion, a seven-year high.
Demand for jewelry in the IV quarter fell to the lowest level since 2011 – by 10% to 584.5 tons.
Weak demand can mainly be explained by a sharp jump in gold prices in the III quarter.
As a result, global demand for gold in the IV quarter fell 19% compared to the same quarter a year earlier to 1,045 thousand tons, while consumer demand fell 11.4% to 825 tons.
source: gold.org
