Gold Records Lower Demand in Q1

A new report by the World Gold Council revealed that demand for gold fell globally in the first quarter of 2023 following shrinking appetite for ETFs and weak footfall in India, despite purchases by central banks during the same period.

In its quarterly report released on Friday, the Board said demand for precious metal during the first quarter (excluding out-of-cabin transactions) fell 13% year-on-year to 1,081 tons.

Total demand for gold, including out-of-cabin transactions, rose 1% year-on-year to 1,174 tons, as the recovery in out-of-cabin investment, in line with investors’ trends in the futures market, offset weakness in some regions.

Central banks’ demand for gold jumped strongly in the first quarter of 2023, adding 228 tons to international reserves.

Although the figure is lower than the previous 40, it is the strongest first quarter ever, according to the World Gold Council.

Four central banks accounted for the majority of gold purchases, led by Singapore’s monetary authority, which added 69 tons, its first increase in gold reserves since June 2021, bringing its total reserves in March to 222 tons, up 45% from the end of 2022.