Gold Jewelry Demand Hits Eight-Year Low

RAPAPORT... Global gold-jewelry demand dropped 10% year on year in the fourth quarter to its lowest level since 2011 due to economic slowdowns in India and China, the World Gold Council (WGC) reported.Appetite for gold jewelry in India fell 17% for the quarter, as prices of the yellow metal reached record levels in the second half of the year. The domestic slowdown in the country and lower demand from rural sectors also led to the drop. Consumer sales were weaker during the important jewelry-buying Diwali holiday in October, WGC noted. Those drops outweighed wedding-related demand and sales during retail promotions.Demand in China fell 10%, marking the fifth consecutive quarter of year-on-year declines for the key market, the WGC said. Chinese demand has been slowing due to a weaker economy, rising inflation, global trade disputes, and the shifting tastes of the younger generation toward lighter jewelry pieces with fashionable designs. The higher gold prices also impacted demand. In the US - the world's third-largest gold-jewelry market - demand rose for the 12th consecutive quarter, increasing 2% to 49.2 tonnes amid strong consumer confidence and a robust economic environment.Worldwide demand fell 6% to 2,107 tonnes in 2019, with appetite in India sliding 9% to 544.6 tonnes and that in China dropping 7% to 637.3 tonnes. Global demand for gold in all forms - such as bars and coins, and for technology, finance and investment - slipped 1% to 4,355.7 tonnes for the year.Image: A hand holding gold jewelry. (Shutterstock)