Gold Nuggets: COVID-19 Changes the Landscape of Gold Demand
What do the Q1 results tell us about gold’s market dynamics? Will changes intensify in the future, and how?
With COVID-19 likely continuing to reverberate global economies as they reopen, what is the outlook for gold amid the changes?
This post was written with contributions from Diego Andrade and Maxwell Gold, CFA. Diego is a Senior Gold Strategist in the Global SPDR Business and Maxwell is the Head of Gold Strategy with State Street Global Advisors.
At first glance, it might seem that the COVID-19 pandemic had only a very limited impact on the global gold market in the first quarter of 2020. As the chart below shows, total demand was little changed, at 1,083.8 metric tons — actually 1% above Q1 2019. But this superficial similarity with prior periods masks some very real changes taking place within gold’s internal market dynamics — changes that look like they may increase in intensity as the rest of the year unfolds.