Global gold jewellery demand increased by 52%
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