Global Gold Demand Falls in Q1 2023, Says World Gold Council - WGC

Bullion Bite

The World Gold Council (WGC) reported that global gold demand declined in the first quarter of 2023, compared to the same period in 2022. Large purchases by central banks and Chinese consumers were offset by reduced investor buying. Total demand amounted to 1,081 tonnes, down 13% from the previous year's first quarter.

Jewellery fabrication remains the largest demand driver, accounting for 50% of the total gold demand. Central banks purchased 228 tonnes of gold, the highest in any January-March period in data going back to 2000. China's jewellery demand rose to 198 tonnes, the highest since Q1 2015, as the end of COVID-19 controls encouraged consumer spending. Meanwhile, US buyers worried about banking and economic turmoil purchased 32 tonnes of gold bars and coins, the highest in any quarter since 2010. However, purchases of gold bars and coins fell in Europe, and Indian jewellery demand slipped to a three-year low. Additionally, exchange-traded funds (ETFs) that store bullion for investors sold gold.

Investment demand rose in March, and the WGC expects it to grow further this year. The council anticipates that central bank buying will remain robust, albeit lower than last year's high. Nonetheless, the stockpiling of gold by investors is likely to make the precious metal more expensive, which could reduce demand in countries like India, where consumers are often deterred by high prices.

Gold is considered a safe-haven asset, and investors often buy more of it during times of economic instability. Demand for gold soared in 2022, reaching an 11-year high, thanks to the largest central bank purchases on record. Gold prices are currently near record highs, above $2,000 per ounce.

#buttons=(Ok, Go it!) #days=(20)

Bullion Bite uses cookies to enhance your experience. How We Use Cookies?
Ok, Go it!