New research has found that demand for gold across the globe in the third quarter of 2020 dropped to its lowest in 11 years.
The World Gold Council found that global gold demand was 892.3 tonnes over the July-September quarter, down 19% from the third quarter of 2019 and the lowest since Q3 2009, during the financial crisis.
Demand dropped as a rush by investors to stockpile buillon slowed and central banks sold metal for the first time in a decade, according to the WGC.
Usually driving this demand would be jewellery sales, which recovered slightly in Q3 especially in China and India, but this was offset by investors looking for an asset they see as a safe store of value, Reuters reported.
WGC predicted that jewellery demand is likely to rise again in the final quarter, driven by China and India, but with ongoing uncertainty, investors will remain the driving force of the market.