Demand for gold jewellery in UK increased by 1% in the first quarter of 2016, despite an overall gold jewellery decline.
That’s according to the latest report from the World Gold Council (WGC), which found global gold jewellery demand fell 19% in the first quarter of the year to 482 carats – down from 597 carats in the same period last year.
The report attributed the decline to higher gold prices, industrial action in India, and a softening of the economy in China which resulted in many consumers delaying purchases.
Meanwhile, gold bullion demand reached 1,290 tonnes during the quarter – a 21% increase compared to the same period last year, making it the second largest quarter on record.
Alistair Hewitt, head of market intelligence at the WGC, said: “Two major themes emerged in the first quarter of 2016. Spurred on by the uncertainty raised by negative interest rates, the investment sector was the dominant driver of gold demand, helping to push prices up 17% over the course of the quarter, as ETF inflows swelled.
“Conversely, jewellery demand endured a difficult quarter due to a continued lack of consumer confidence in the face of a weakening Chinese economy and a 42 day strike by jewellers in India.”