The World Gold Council has presented findings from its 2016 full-year report on trends related to the precious metal.

Global demand for gold rose in 2016 to a three-year high of 4,308 tonnes, with gold-backed ETFs shining bright, according to a report from the World Gold Council.

Among the headline findings, investors developed a bigger appetite for gold bars and coins in the fourth quarter of the year, although annual demand dipped 2 per cent year-on-year to 1,029 tonnes.

Demand in this area was “exceptionally soft” until the final quarter, the report said, when investors took advantage of lower prices in October and November. China had a particularly strong finish to the year, with demand up 89 per cent, spurred (among other factors) by emerging fears of a property bubble and the depreciation of the yuan.

Meanwhile, global demand for gold-backed exchange-traded funds and similar products reached its highest level since 2009 (531.9 tonnes). In an abrupt turnaround, however, there were outflows of 193.1 tonnes in the fourth quarter. Concerns over the uncertain path of future interest rate hikes, the US election, negative interest rates and price momentum supported inflows overall.

In other observations, central bank demand for gold was at its lowest since 2010, with net purchases (at 383.6 tonnes) 33 per cent lower than in 2015, due partly to increased pressure on FX reserves, according to the report. It added that 2016 was nonetheless the seventh consecutive year of net purchases by central banks. Russia, China and Kazakhstan dominated purchases.

Off the back of rising prices, demand for jewellery sank last year to a seven-year low of 2,041 tonnes. Regulatory and fiscal hurdles in India, and China’s softening economy, were “key reasons” for weakness in the sector, the WGC said.

Overall, the price of gold ended the year up 8 per cent. Having risen 25 per cent by the end of September, however, it relinquished some of its gains in Q4 following Trump’s conciliatory acceptance speech and the Federal Open Market Committee’s interest rate rise, the organisation added.