Q2 might reflect what Q1 did not for gold!
Notable in Q1 remained a lack of gold sales Q1 gold demand (excluding OTC demand) slipped 5% y/y to 1,102t, due to continued ETF outflows. Inclusive of sizable OTC buying by investors, total gold demand increased 3% y/y to 1,238t – the strongest first quarter since 2016. Q1 saw no let-up in the pace of central bank gold buying: 290t (net) was added to official holdings, only part of which is currently reflected in IMF data. Bar and coin demand matched the previous quarter at 312t, translating to a 3% y/y increase. Global gold ETF holdings fell by 114t. Europe and North America both saw quarterly outflows, slightly countered by inflows into Asian-listed products. US listed funds saw a positive shift late in the quarter. The jewellery sector was healthy, given the price rally. Global jewellery consumption was just 2% lower y/y at 479t. Jewellery fabrication grew by 1% y/y to 535, resulting in inventory build of 56t during the quarter. Technology demand for gold recov...