Although the gold market strengthened in the closing months of 2017, gaining six percent to 1,095.8 tonnes in Q4, the full year demand fell seven percent to 4,071.7 tonnes as ETF inflows and central bank purchases fell short of 2016 levels, according to a report from World Gold Council, the market development organisation for the gold industry.
Bar and coin demand also dropped by two percent in 2017 as record equity markets pushed US gold investment to a 10-year low, whilst India and China led a four percent recovery in jewellery, although demand still remains lower than ever.
The report also highlights the three percent increase in demand of technology since 2010 due to the growing use of gold in smartphones and vehicle safety features.
Despite 2017 being the year being the first year of growth in jewellery demand since 2013, as stable gold prices and improving economic conditions helped jewellery demand grow four percent to 2135.5 tonnes, it is still below historical levels.
World Gold Council’s main purpose is to increase and sustain demand for gold, provide industry leadership and have a global demand on the gold market.