Global Gold Demand in Q1 was the Lowest Since 2008

According to the data released by World Gold Council (WGC) on Thursday, global gold demand between January and March 2018 reached 973 tonnes. This marks the lowest first quarterly demand for a year since 2008.

The fall was largely impacted by the drop in gold-backed ETFs investments and gold bars.

Gold Jewellery

The global demand for gold jewellery was roughly at 488 tonnes, down by flat 1 percent in the first quarter of 2018. China's demand was aided by its holiday season. The USA also saw an increase in its demand from a supportive economic situation.

India, on the other hand, experienced a 12 percent drop in gold demand from rising gold prices, exaggerated mainly from the weakening of the Indian rupee.

Gold Bars and Coins

Global gold demand in this segment was down by 15 percent to 254.9 tonnes. The drop in demand for gold bars and coins was lead by China, Germany and the US. A tight range movement in international gold price could be a reason to discourage investors. However, China's drop in demand might seem higher due to the exceptional strength in the first quarter of 2017.

Gold ETFs

ETFs experienced a hike in demand for the fifth consecutive quarter driven by growth in North America. Rising interest rates and a spike in stock market volatility gave mixed results of the investments made.

Central Banks

Central Banks around the world added 166 tonnes to their official reserves in Q1 2018. This is in line with average purchases of 115 tonnes since the first quarter of 2010 and the highest in a Q1 period of the last four years.

Russia, Kazakhstan, and Turkey dominated the list, adding 91 tonnes in total amoung them.

Technology

Demand for gold in technology was up by 4 percent in the first quarter of 2018 from the same period last year due to increase in growth of 3D sensors for facial recognition.