Global gold demand fell by 11% to 3,385.8 tons in 2009, but dollar demand for the precious metal remained above the USD100 billion mark as prices remained strong. In its ‘Gold Demand Trends” report,  the World Gold Council (WGC) has reported that fourth-quarter gold demand fell by 24%, when compared with the final three months of 2008, but noted that demand had risen by 2,6%, when compared with the third quarter of 2009.

WGC CEO Aram Shishmanian commented that 2009 provided a “clear illustration” of the diversity inherent in the global gold market. “As the year progressed, a rebalancing of gold market fundamentals occurred, ensuring that as investment demand came off from the exceptional levels seen in the first quarter, total demand for the year remained robust thanks to a rebound in jewelry and industrial demand,” he said in a statement.

Industrial demand recorded its third consecutive quarter-on-quarter improvement in the fourth quarter and its first annual gain in more than two years, benefiting from a rebound in electronics demand, reflecting improved economic conditions, the WGC noted. However, total industrial demand fell by 16% in 2009, when compared with 2008.