First quarter report from the World Gold Council (a gold lobby group), in brief:
- total global gold demand was +3% year-on-year, reaching 1,238 tonnes (WGC says this is the strongest first quarter since 2016)
- WGC cites over-the-counter (OTC) purchases in the investor market, persistent central bank buying and increased demand from Asian buyers.
- central banks bought 290 tonnes in the first quarter
- Gold exchange-traded funds (ETFs) continued to see outflows
- Chinese demand – renewed investor interest due to weakening local currency and poor performance of domestic stock markets
- The People’s Bank of China (PBOC) purchased 27 tonnes of gold in the first three months of the year, bringing its reserves to a record high of 2,262 tonnes.
- China’s stockpiling was likely an effort to protect its economy from Western sanctions in the event of conflict over Taiwan.
- demand for gold in the technology sector recovered by 10% year-on-year, thanks to the boom in artificial intelligence in the electronics sector.
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Earlier:
- Goldman Sachs says its “base case” forecasts gold reaching $2,700 by the end of 2024.
This article was written by Eamonn Sheridan at www.forexlive.com.
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