Gold demand resilient despite high prices – WGC report
At 1,097.6 tonnes, first quarter global gold demand was 5 percent below the near-record levels seen in Q1 2011, the World Gold Council (WGC) said in its latest Gold Demand Trends report.
With average prices materially higher than in the same quarter in 2011, this equated to a value of $59.7 billion, 16 percent higher year-on-year.
Demand for gold in the jewellery and technology sectors declined in response to US$ prices that were, on average over the quarter, 22 percent above year-earlier levels.
“Growth in the investment sector was led by an increase in demand for ETFs and similar products, although demand for gold bars and coins moderated in comparison with the exceptionally strong result in Q1 2011,” the WGC said.
Central banks made a solid contribution to demand, albeit lower than the very strong net inflows of Q1 2011.