India Steers Gold Jewellery Demand Rush in Q1 2019

SEATTLE (Scrap Monster): The Gold Demand Trends Q1 2019 report published by the World Gold Council (WGC) suggests marginal jump in global gold jewellery demand during the first quarter of the current year. The global demand inched higher to 530.3t, valued at $22.2 billion. Much of the demand growth came from India.

According to WGC, the Indian gold jewellery demand surged higher 5% over the previous year to total 125.4t. The purchases remained subdued during the first half of the quarter. However, the correction in domestic gold prices by beginning of March triggered wedding-related purchases in the country. The various promotional schemes launched by jewelers coupled with higher number of auspicious days lifted the jewellery demand.

The Chinese demand for gold jewellery softened by 2% during the quarter to total 184.1t. The demand drop was mainly on account of volatility in gold prices and uncertainty among consumers with regards to slowdown of the country’s economy. The traditional boost from Chinese New Year holiday too failed to lift the demand.

The demand in the U.S. increased marginally by 1%, rising for the ninth consecutive quarter. However, the pace of expansion witnessed considerable decline. The demand reached 24t in Q1 this year. The European jewellery demand dropped 1% to 12.7t.

The jewellery demand in Turkey and Iran fell by 10% each. Egypt, the UAE and Saudi Arabia registered growth in demand. Vietnam and Indonesia witnessed strong growth, whereas stable growth was reported by Malaysia, Japan and Thailand. The gold jewellery demand witnessed notable decline in South Korea and Singapore.