Gold demand falls 4% globally to 964.3 tonnes: WGC
The total gold demand stood at 1,007.5 tonnes in the second quarter of 2017, WGC said in its Gold Demand Trends Q2 2018 report.
Global gold demand fell by 4 per cent in the April-June quarter at 964.3 tonnes from the same period last year mainly on account of slower inflows into gold-backed exchange-traded funds (ETFs) and drop in jewellery demand, World Gold Council (WGC) said in a report.
ETFs were down 46 per cent at 34 tonnes compared to 63 tonnes last year, however, European-listed funds saw decent inflows due to uncertainty stemming from Italian elections and monetary policy outlook and China, the world’s largest gold market, saw a 7 per cent rise in consumer demand, it said.
In contrast, the report said, holdings of North American-listed funds fell by 30.6 tonnes as investors focused on domestic economic strength.
Global bar and coin investment was virtually unchanged at 248 tonnes with stronger demand in China and Iran that was fuelled by increasing geopolitical tensions with the US and were offset by falls in Turkey, India and Europe, where local prices remained elevated.
Meanwhile, jewellery demand dropped marginally by 2 per cent to 510.3 tonnes compared to 519.4 tonnes in the second quarter of 2017, following weaker demand in India and the Middle East, which was partly offset by growth in China and the US, both up 5 per cent compared against the previous year, it said.
“It’s interesting how investors around the world have reacted to some of the risks stalking financial markets. Weaker economic prospects and tumbling currencies off the back of heightened tensions with the US boosted Chinese and Iranian gold demand, while US investors shrugged off any geopolitical concerns," WGC Head of Market Intelligence Alistair Hewitt said.
"Demand from tech companies continued to grow, with H1 demand reaching a three-year high, while economic growth boosted jewellery demand in the US with quarter two demand hitting a 10-year high,” Hewitt added.
Alongside the familiar list of Russia, Turkey and Kazakhstan, the Reserve Bank of India returned to the market, even as it was a very small purchase of 2.5 tonnes.
This strength in mine output is mainly due to the continued ramp-up of several projects, as well as a further capital expenditure from gold miners, it said.
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