Covid-19 takes a toll on first-half gold demand, production

Global gold authority, the World Gold Council (WGC), reports that gold demand fell by 6% year-on-year to 2 076 t in the first half of this year.

The most prevalent impact on demand and production was the international spread of the Covid-19 pandemic, severely curtailing consumer demand while providing support for investment, the WGC notes in its half-year review.

In terms of supply, the WGC report states that total supply of gold was also impacted on by the Covid-19 pandemic, falling 6% year-on-year to 2 192 t as both mine production and recycling were affected by lockdown restrictions.

Mine production fell 5% year-on-year to 1 604 t, its lowest first-half level since 2014, while recycling experienced a similar decline to 590 t.