Global gold demand in Q1 2017 was 1,034.5t, 18% below the exceptional Q1 2016, which was the strongest ever first quarter. Solid inflows into ETFs were nevertheless a fraction of last year’s near-record inflows, and slower central bank demand also contributed to the year-on-year drop. Bar and coin investment, however, was healthy at 289.8t (+9% yoy), while demand firmed slightly in both the jewellery and technology sectors.
Inflows into gold-backed ETFs were concentrated in Europe
Although inflows of 109.1t were just one-third of the extraordinary levels seen in Q1 2016, demand was firm, supported by continued political uncertainty in Europe.
Investment in gold bars and coins grew by 9% y-o-y
Much of this growth came from China, where retail investment was up 30%, breaching 100t for only the fourth time on record.
Jewellery demand was steady at 480.9t, marginally up y-o-y
Gains in India were the main reason for the slight y-o-y increase. But demand remains relatively weak in a historical context.
After a whirlwind end to 2016, Indian consumers welcomed stability
Continued remonetisation by the RBI lifted consumer sentiment, which encouraged demand – albeit from a very low base.
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The World Gold Council’s detailed publication on gold demand and supply trends during the first quarter 2017, analysed by sector and by region.
