Today has seen the World Gold Council (WGC) publish its report on gold demand trends in the first quarter. The data shows high first-quarter gold demand thanks to strong investment demand, which is set to remain in place for the rest of the year, economists at Commerzbank report.
Gold demand at three-year high
“Global gold demand soared by 34% YoY to 1,234 tons, its highest level since the fourth quarter of 2018. It was driven solely by strong investment demand, which tripled YoY to 551 tons. This is attributable in turn to the high ETF demand amid the Ukraine war and the steep rise in inflation.”
“For as long as the geopolitical uncertainties and the high inflation environment continue, the WGC envisages robust investment demand this year.”
“Jewellery demand is expected to remain largely constant. The lockdown measures in China will prevent it from recovering to the average levels seen in the past, as they are contributing to lower consumer demand there.”
“Central banks are set to remain net buyers of gold this year, albeit on a lower level.”
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