The global gold market ravaged by COVID-19 disruption throughout the year, saw the biggest decline in years while record high prices turned into a mixed blessing.

As per the latest report released by the World Gold Council, the fourth quarter gold demand of 783.4 tons (t) was 28 percent lower YoY, making it the weakest quarter since the midst of the Global Financial Crisis in Q2 2008. The coronavirus pandemic, with its far-reaching effects, was the driving factor behind weakness in consumer demand throughout 2020, resulting in a 14pc decline in annual demand to 3,759.6t, the first below 4,000t year since 2009.

The demand for gold jewellery in Q4 fell 13pc YoY to 515.9t, resulting in a full-year total of 1,411.6t, 34pc lower than in 2019 and a new annual low for our data series. While demand improved steadily from the severely depleted Q2 total, consumers across the world remained at the mercy of coronavirus lockdowns, economic weakness and high gold prices.

The report stated that the demand for bar and coin demand grew 10pc YoY in Q4, pushing annual retail investment up 3pc to 896.1t. Nevertheless, demand remained weak relative to the 10-year average (1,199.5t).

The technology sector, impacted by disruption from COVID-19, saw gold usage decline 7pc in 2020 to 301.9t. But the year ended on a relatively positive note, with Q4 seeing marginal YoY growth to 84t.

Total annual gold supply of 4,633t was 4pc lower YoY, the largest annual fall since 2013. The drop was largely explained by coronavirus-related disruption to mine production, offset by a marginal 1pc increase in recycling to 1,297.4t for 2020.