The global gold demand in Q1 of 2017 has dropped by 18% when compared to last year, according to the World Gold Council’s latest Gold Demand Trends report.
While inflows into exchange traded funds (ETFs) were solid, the demand couldn’t match 2016’s “exceptionally high” Q1. European-listed products were the most popular with Germany and the UK leading ETFs inflows.
Jewellery demand remained stable, up by 1% on last year’s Q1.
Alistair Hewitt, head of market intelligence at the World Gold Council, said: “Demand is down year-on-year, but that is largely because Q1 last year was exceptionally high.
“Although we did not see the record-breaking surges in ETF inflows experienced in Q1 2016, we have seen good inflows nonetheless this quarter, with strong interest from European investors ahead of the Dutch and French elections.
“Retail investment demand is strong too, up 9% year-on-year with demand worth over $11bn (£8.5bn) in Q1. China led the way with bar and coin demand surging 30%, breaching 100t for only the fourth time on record, fuelled by concerns over potential currency weakness and a frothy property market.
“Elsewhere the picture was less rosy: central bank demand was down and jewellery demand is still in the doldrums, although there are signs of improvement, especially from India where the gradual remonetisation of the economy is supporting the jewellery market.”