World Gold Demand Dropped 23%, Says WGC

The global gold ETF holdings witnessed decline by 177.9t, mainly driven by outflows from western market funds.

SEATTLE (Scrap Monster): The Gold Demand Trends Q1 2021 report published by the World Gold Council (WGC) suggests notable decline in global gold demand. The Q1 2021 gold demand totalled 815.7t, down significantly by 23% from the same quarterly period in 2020. It must be noted that the overall gold demand had stood at 1,059.9t during Jan-Mar 2020. Meantime, the demand remained more or less flat with Q4 2020.

The report notes that the U.S. dollar gold price recorded 10% decline during the initial quarter of the year. The downtrend in gold prices was partly on account of strong ETF outflows. The investor sentiment was also impacted by higher interest rates. The global gold ETF holdings witnessed decline by 177.9t, mainly driven by outflows from western market funds.

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The central bank gold purchases amounted to a net total of 95 tonnes in Q1 2021, compared with 124.1 tonnes in the comparable quarter last year. This represents a year-on-year decline by 23%, said WGC report.

The gold jewellery demand, at 477.4t, surged higher by 52% over the year. The bar and coin investment too was up by 36% to 339.5t. Also, gold used in technology stood at 81.2t, higher by 11% year-on-year.

The total gold supply during the quarter fell 4%. Weaker gold prices led to reduced supply of recycled gold. On the other hand, gold mine production grew during the quarter.

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