Global Gold Demand Drops 7% to 973.5 tons in Q1 2018: WGC | CORPORATE ETHOS

Global Gold Demand Drops 7% to 973.5 tons in Q1 2018: WGC

By: | May 3, 2018
gold

May 3: Gold demand of 973.5t was the lowest Q1 since 2008. The main cause was a fall in investment demand for gold bars and gold-backed ETFs, partly due to range-bound gold prices, according to World Gold Council (WGC).

Jewellery demand was steady at 487.7t, as growth in China and the US compensated for weaker Indian demand. Central banks bought 116.5t of gold (+42% y-o-y). Technology demand extended its recent upward trend, growing 4% y-o-y to 82.1t. The total supply of gold increased by 3% to 1,063.5t, primarily due to a modest increase in producer hedging. Mine production was fractionally higher at 770t.

China, Germany and the US drove weakness in bar and coin investment. Global demand fell 15% to 254.9t as range-bound gold prices undermined investor interest, the quarterly report of WGC said.