"From mining operations to consumption, all elements of the chain have been affected. While this has led to some distortions within parts of the market, it has also allowed the supply chain to demonstrate its resilience," the WGC said.
The WGC says that both gold mining and recycling activities were curtailed due to lockdown restrictions in the first quarter. But the declines were modest in comparison to the scale of the disruption to other industries globally.
"In addition, we also saw downstream capacity reduced with a small number of refiners halting operations, as well as challenges in transporting physical gold due to the reduction in commercial flights. However, despite all the supply and logistical issues, overall liquidity in the gold market remains robust which clearly highlights the strength of the gold market.
"The outbreak also took investor uncertainty to new highs against the existing global backdrop of low and negative interest rates, as well an anaemic growth outlook, fuelling a surge in gold investment demand in the first quarter."
The report explores:
• How the different components across the supply chain have been affected.
• The impact on the flow of gold through the supply chain.
• How the disruption has affected investment demand.