Overall gold demand in Q1 2017 was 1,034 tonnes, a fall of 18 percent compared with 1,262 tonnes in Q1 2016, according to the World Gold Council’s latest Gold Demand Trends Report. Global jewellery demand increased by one percent.
When explaining the number drop, WGC said: “Inflows into Exchange Traded Funds (ETFs) totalled 109 tonnes which, although solid, were nonetheless a fraction of last year’s near-record inflows. Slower central bank demand also contributed to the weakness.”
Jewellery demand was 481 tonnes, marginally up on Q1 2016. Gains in India contributed to the slight year-on-year increase, WGC said. “But demand remains relatively weak in an historical context, 18 percent below the five-year quarterly average.”
“Indian consumers enjoyed a period of relative stability in the domestic market, lifting demand 15 percent year-on-year to 124 tonnes. Continued remonetisation by the RBI buoyed consumer sentiment, which encouraged demand ahead of the auspicious wedding season, albeit from a low base.”
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