LONDON (Reuters) – International gold demand fell within the first three months of 2023 as massive purchases by central banks and Chinese language customers have been offset by diminished investor shopping for, the World Gold Council (WGC) mentioned on Friday.
Complete demand amounted to 1,081 tonnes, down 13% from the primary quarter of 2022, the WGC mentioned in its newest quarterly demand traits report.
Round half of gold demand comes from jewellers, with buyers and states chargeable for many of the relaxation. Bullion is seen as a protected asset and buyers typically purchase extra throughout instances of financial instability.
Demand shot to an 11-year excessive in 2022 due to the largest central financial institution purchases on report. Gold costs, in the meantime, are close to report highs above $2,000 an oz.
Graphic: Gold demand –
Among the many shiny spots through the first quarter, central banks purchased 228 tonnes of gold, greater than in any January-March interval in information going again to 2000, the WGC mentioned.
China’s jewelry demand was 198 tonnes, essentially the most for any quarter since Q1 2015, as the top of COVID-19 controls unleashed shopper spending.
U.S. consumers anxious about banking and financial turmoil in the meantime purchased 32 tonnes of gold bars and cash, the very best in any quarter since 2010.
However, purchases of gold bars and cash fell in Europe, Indian jewelry demand slipped to a three-year low and alternate traded funds (ETFs) storing bullion for buyers bought gold, the WGC mentioned.
Funding demand was already choosing up in March as financial institution failures unfold worry by way of markets and analysts anticipated the top of U.S. rate of interest will increase.
The WGC mentioned funding demand would seemingly develop this 12 months and central financial institution shopping for would stay sturdy, albeit under final 12 months’s excessive.
Nevertheless, stockpiling by buyers is prone to make gold dearer, which may cut back demand in international locations like India the place customers are sometimes postpone by excessive costs, mentioned WGC analyst Krishan Gopaul.
Graphic: Gold demand outlook –
Following are numbers and comparisons.
QUARTERLY GOLD DEMAND (tonnes)*
Q1’23 This autumn’22 Q1’22 Month on Yr on
month % 12 months %
change change
Jewelry fabrication 508.6 601.3 516.4 -15% -2%
Know-how 70.0 72.3 81.0 -3% -13%
– of which electronics 56.0 58.0 66.2 -3% -15%
– different Industrial 11.6 11.9 12.0 -3% -3%
– dentistry 2.4 2.4 2.7 -2% -12%
Funding 273.7 250.6 558.4 9% -51%
– of which bar and coin 302.4 340.3 287.7 -11% 5%
– ETFs & comparable merchandise -28.7 -89.6 270.7 -68% -111%
Central banks & different inst. 228.4 378.6 82.7 -40% 176%
GOLD DEMAND 1,080.8 1,302.8 1,238.5 -17% -13%
OTC and different 93.6 -69.7 -73.3 -234% -228%
TOTAL DEMAND 1,174.4 1,233.2 1,165.1 -5% 1%
* Supply: World Gold Council, Gold Demand Developments Q1 2023
(This story has been refiled so as to add a dropped phrase in paragraph 4)
Reporting by Peter Hobson; Modifying by Toby Chopra
