WGC: Global gold demand down 23% in Q1 y-o-y

According to World Gold Council (WGC), Q1 gold demand was 815.7t, virtually on a par with Q4 2020, but down 23% compared with Q1 2020, as per a press release from WGC. 
While the average gold price in Q1 was 13% higher y-o-y, it declined by 4% q-o-q. The opportunity to buy at lower prices, relative to the highs seen last year, boosted consumer demand, particularly as many markets continued to emerge from lockdown and economic recovery lifted sentiment.
Jewellery demand of 477.4t was 52% higher y-o-y. The value of jewellery spending $27.5 bn was the highest for a first quarter since Q1 2013. Bar and coin investment of 339.5t, up 36% y-o-y was buoyed by bargain-hunting.
Growth in consumer demand was offset by strong outflows from gold-backed ETFs, which lost 177.9 in Q1 due to higher interest rates and a downward price trend.
Q1 saw continued healthy levels of net buying by central banks: global official gold reserves grew by 95.5t, 23% lower y-o-y, but 20% higher q-o-q. Gold used in technology grew 11% y-o-y in Q1 as consumer confidence continued to recover. The demand of 81.2t was just above the five-year quarterly average of 80.9t.

Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough&Polished