World Gold Council: Gold demand off to a soft start in 2018

The following is an edited summary from the World Gold Council, based on its Gold Demand Trends Q1 2018 report. To access the full report, visit www.Gold.org. Gold demand had a soft start to 2018, reaching 973 tonnes – the lowest first quarter since 2008. This largely came from a fall in investment demand for gold bars and gold-backed, exchange traded funds (ETFs), as a subdued gold price environment hampered demand. Global jewellery demand came flat at 488 tonnes (15.69 million oz.), down 1% on first-quarter 2017. Demand in China was buoyed by holiday demand, and U.S. demand improved in response to the supportive economic backdrop. In contrast, Indian consumers were discouraged by rising gold prices, exaggerated by a weakening rupee, with demand down 12%, compared with 2017. China, Germany and the U.S. drove weakness in bar and coin investment: global demand was down 15% to 254.9 tonnes (8.2 million oz.). The range-bound gold price undermined investor interest in these markets, although China’s weakness partly owed to exceptional strength in first-quarter 2017. Continue reading at The Northern Miner.