Global gold demand faltered in the first quarter due to a lack of interest from institutional investors and a drop in purchases of technology products, compared to a year ago, when it was boosted by the war in Ukraine and an influx to this safe haven. . Gold demand between January and March reached 1,081 tonnes, down 13% from the same period last year, according to a quarterly report from the World Gold Council (CMO) published on Friday.
“The results are quite mixed” for gold, summed up with AFP Krishan Gopaul, an analyst within the organization. The disinterest of professional investors has resulted in particular in the sale of ETFs, these listed financial securities, indexed to the price of the yellow metal, which faithfully reproduce the price of physical gold and allow betting on its price. The ETFs registered capital outflows equivalent to 28.7 tons of gold in the first quarter.
During the same period of 2022, which had been marked by a strong resurgence of interest in gold in a context of geopolitical instability with the outbreak of the war in Ukraine, ETFs had instead registered capital inflows equivalent to 270 7 tons of gold.
“One of the weakest ever recorded”
In the technological sector, the demand for “with one of the most reliable quarters you have never registered”, indicate the CMO, the global crisis of life freinant les dépenses des consommateurs en biens électroniques como les téléphones portables ou the computers. Thus, it plummeted 13% year-on-year, standing at 70 tons in the first quarter. Separately, central bank gold purchases increased 176% in the first quarter compared to the same period in 2022, standing at 228.4 tonnes.
Thus, they are continuing a trend that began last year, with special interest in gold “which performs well in times of high inflation, allowing it to maintain its value,” explains Krishan Gopaul. In the jewelery sector, gold demand was stable in the first quarter with a slight increase of 1% yoy to 477.9 tonnes, as strong buying in China offset weakness in other countries such as India. , specifies the CMO.
Physical investment in coins and bars also remained stable from January to March 2023 (+5% year-on-year), totaling 302.4 tons.
Source: BFM TV
