WGC Released Gold Demand Trends Report- Q1 2022

The gold ETFs witnessed strongest quarterly inflows since Q3 2020, driven by safe-haven demand amidst geopolitical uncertainties.

SEATTLE (Scrap Monster): The Gold Demand Trends Q1 2022 report published by the World Gold Council (WGC) indicates that global gold market recorded solid start to the New Year. The first quarter gold demand surged higher by 34% above the corresponding quarter in 2021, primarily driven by robust ETF inflows.

Both the gold price as well as demand rose significantly, triggered by Russia’s invasion of Ukraine and surging inflation. The average quarterly gold price, at $1,877.20 per ounce, was around 5% higher than the prior year quarter.

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The gold ETFs witnessed strongest quarterly inflows since Q3 2020, driven by safe-haven demand amidst geopolitical uncertainties. The ETF holdings surged by 269 tonnes, reversing the annual net outflow of 174 tonnes in 2021. Also, central banks added 84 tonnes to gold reserves during the initial quarter of 2022. The net buying more than doubled from the prior quarter.

The bar and coin investment stood at 282 tonnes, nearly 11% above its five-year quarterly average. On the other hand, softer demand in China and India led to 7% dip in jewellery consumption in Q1 2022.

The WGC report noted that the supply of recycled gold jumped to 310 tonnes, higher by 15% over the previous year. The gold recycling activity recorded the strongest first quarter in six years.

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