Gold demand rises in Q1 amid COVID-19 pandemic30 Apr 2020 07:36
Demand for gold increased 1% annually to reach 1,083.8 tonnes in the first quarter of the fiscal year as investors turn to safe-haven assets due to the uncertainty caused by the coronavirus outbreak, the World Gold Council said in its report on Thursday. Translated to value, global gold demand reached $55 billion, marking the strongest quarter since the second trimester in 2013.
Global gold reserves surged by 145 tonnes in the first quarter compared to the same period last year. However, the council expects "a significant slowdown in future buying after Russia announced that it would suspend its long-term buying programme from April."
Meanwhile, gold-backed ETFs (gold ETFs) recorded huge inflows of 298 tonnes, raising global holdings in these products to a fresh all-time high of 3,185 tonnes, while demand for jewelry slumped 39% on an annual basis to 325.8 tonnes, marking its lowest level on record.
Gold traded 0.06% lower against the dollar, selling for $1,711.88 per ounce at 1:29 am ET.
Breaking the News / GA