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Gold demand for jewellery fell by 7% The global gold market saw a solid start to 2022, with first quarter demand (excluding OTC) up 34% year-on-year, thanks to strong ETF flows, reflecting gold’s status as a safe haven investment during times of geopolitical and economic uncertainty. Geopolitical crises weighed heavily on the global economy and reinvigorated investor interest, pushing the gold price briefly to US$2,070/oz in March, just shy of its all-time high.  The World Gold Council’s latest Gold Demand Trends Report reveals gold ETFs had their strongest quarterly inflows of 269t since Q3 2020, more than reversing the 173t annual net outflow from 2021 and driven in part by the rising gold price   Turning to the jewellery sector, global gold demand fell 7% year-on-year to 474t, driven primarily by softer demand in China and India.  Despite a strong performance in China over the lunar New Year period, this was later dampened by Covid outbreaks in February and March leading to strict l

Gold demand tumbles by 23% in 2021 Gold supply declined 4% year-on-year   Gold investment demand fell in Q1 driven by hefty outflows in gold-backed exchange-traded funds (ETFs)  as growing expectations of higher interest rates impacted sentiment, according to the World Gold Council’s latest Gold Demand Trends report. While Q1’s overall global gold demand,  at 815.7 tonnes (t), was on par with the preceding quarter, there was a significant (23%) drop year-on-year, as gold-backed ETFs saw 177.9t of outflows.   However, the effect of this drop in ETF demand was mitigated by the strength of bar and coin demand. Such retail gold purchases reached 339.5t (+36% year-on-year), influenced by price-driven ‘bargain-hunting’ and widespread concern over growing inflationary pressures.   Furthermore, the value of gold jewellery purchased by consumers enjoyed a post-Covid rebound, rising to 477.4t - a 52% annual increase. This marked a strong improvement from an extremely weak Q1 2020. The