Global gold demand grew in Q1 2019 on increased central bank buying - WGC

Dhwani Mehta FXStreet

According to the latest World Gold Council’s (WGC) latest Gold Demand Trends report for the first quarter of 2019, continued growth in central bank buying boosted the global gold demand in Q1.

Key Highlights (via Reuters):

“Global gold demand grew to 1,053.3 tonnes in the first quarter of 2019.

This constitutes a 7% rise year-on-year, largely driven by “continued growth in central bank buying, as well as growth in gold-backed exchange-traded funds (ETFs)”.

Central banks bought 145.5 tonnes of gold – up 68% year-on-year and “representing the strongest start to a year since 2013”.

The increased demand was largely due to “diversification and a desire for safe, liquid assets”.

ETFs and similar products added 40.3 tonnes in Q1, up 49% year-on-year. Bar and coin investment fell 1% to 257.8 tonnes.

Gold used in applications such as electronics, wireless and LED lighting fell 3% to 79.3 tonnes.

Gold demand for jewellery grew 1% y/y to 530.3 tonnes and boosted by India. In India, jewelry demand grew 5% to 125.4 tonnes – the highest growth since the 1st of 2014.”

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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