Global gold demand in Q2 2017 fell by 10 percent to 953 tonnes when compared with the same period in 2016, according to the World Gold Council’s (WGC’s) latest Gold Demand Trends report. Jewellery demand, however, recorded a modest gain in H1 2017 compared to 2016.
“After record levels of inflows into Exchange Traded Funds (ETFs) in H1 2016, a significant slowdown in the sector was the predominant factor behind the fall in overall demand so far this year,” said WGC in the report. Alongside the bar and coin investment which has rebounded from very low levels in 2016, jewellery demand also strengthened from a weak 2016 to 481 tonnes though it fell short of the long-term average, with India being the main contributor to the eight percent gain in Q2.
“The monsoon is looking good in India and, providing the market adapts to the new GST, we may see solid demand around Diwali,” commented Alistair Hewitt, WGC’s head of market intelligence.
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