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Gold has started the year on a relatively muted note, according to the World Gold Council’s Gold Demand Trends report for the first quarter of 2018. Overall demand for the precious metal has decreased by seven per cent compared to the first quarter of 2017, dropping to 973 tonnes.
The council cites a number of factors as potential causes for the decline, including lower investment demand for gold bars. Overall gold jewellery demand also saw a slight decrease of one per cent, although demand levels remain fairly stable in China, the United States, and Europe.
“Relatively solid global economic growth, coupled with the return of volatility in the capital markets in February, created a stable environment for gold in the first quarter—while equity markets around the world came under pressure, the gold price rose,” explained Alistair Hewitt, head of market intelligence for the World Gold Council (WGC).
Gold supply also increased, with improvements in mine production levels spurring a three per cent rise.
For the full report, click here.
