Global gold demand reached 1,290 tonnes (t) in the first quarter of 2016, a 21% increase compared to the same period last year, making it the second largest quarter on record, according to the World Gold Council’s Gold Demand Trends report. This increase was driven by huge inflows into exchange traded funds (ETFs), fuelled by investor concerns regarding economic fragility and an uncertain financial landscape. Concurrently, global demand for jewellery was down 19%, as higher prices and industrial action in India and a softening of the economy in China meant many consumers delayed making purchases.
The key findings from the report for Q1 2016 are as follows:
- Overall demand for Q1 2016 increased by 21% to 1,290t, up from 1,070t in Q1 2015.
- Total consumer demand was 736t down 13% compared to 849t in Q1 2015.
- Global investment demand was 618t, up 122% from 278t in the same period last year.
- Global jewellery demand fell 19% to 482t versus 597t in the first quarter of 2015.
- Central bank demand dipped slightly to 109t in Q1 2016, compared to 112t in the same period last year.
- Demand in the technology sector fell 3% to 81t in Q1 2016.
- Total supply was up 5% to 1,135t in Q1 2016, from 1,081t in the first quarter of 2015. Mine supply was up 8% to 774t.
Click here to download the Q1 2016 Gold Demand Trends report, which includes comprehensive data provided by Metals Focus.