Gold Jewellery Demand Dipped in Q1 2022: WGC

SEATTLE (Scrap Monster): The Gold Demand Trends Q1 2022 report published by the World Gold Council (WGC) noted that global gold jewellery demand witnessed a dip by 7% to 474 tonnes during the quarter. The dip in consumption is partly attributed to higher gold prices, it noted. In value terms, the demand totalled $29 billion, down by 3% over the corresponding quarter a year before.

According to WGC, much of the weakness in demand was accounted for by China and India, which traditionally represents up to 60% of the total quarterly jewellery consumption across the globe.

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The Chinese demand was impacted by Covid-19-related lockdowns. After registering a promising start to the quarter, the Q1 gold jewellery demand in the country registered 8% dip to total 178 tonnes. The first two months of the quarter recorded upbeat sales of gold jewellery. However, the sharp rise in prices in late-February imp-acted demand. The demand came to a halt following strict lockdowns in March across key cities such as Shanghai and Shenzhen.

Meantime, the Indian market was down due to a relative lack of auspicious days. The jewellery demand in India fell by 26% over the previous year to total 94 tonnes in Q1 this year. Elsewhere, particularly in the Middle East and Europe, the demand remained relatively robust.