Q1 gold demand strong, driven by China

World Gold Council (a gold lobby group) Q1 report, in brief:

  • total global gold demand was +3% y/y, hitting 1,238 tonnes (WGC says this is the strongest first quarter since 2016)
  • WGC cite over-the-counter (OTC) investor market buying, persistent central bank buying, higher demand from Asian buyers
  • central banks bought 290 tonnes in Q1
  • gold exchange-traded funds (ETFs) continued to see outflows
  • China demand – renewed investor interest due to the weakening local currency and poorly performing domestic equity markets
  • People’s Bank of China (PBOC) bought 27 tonnes of gold in the first three months of the year, taking its reserves to a record high of 2,262 tonnes
  • China’s stockpiling was probably an effort to guard its economy against Western sanctions in the event of a conflict over Taiwan
  • demand for gold in technology recovered 10 per cent year-on-year driven by the artificial intelligence boom in the electronics sector

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This article was written by Eamonn Sheridan at www.forexlive.com. Source