Q1 gold demand strong, driven by China

World Gold Council (a gold lobby group) Q1 report, in brief:

• total global gold demand was +3% y/y, hitting 1,238 tonnes (WGC says this is the strongest first quarter since 2016)
• WGC cite over-the-counter (OTC) investor market buying, persistent central bank buying, higher demand from Asian buyers
• central banks bought 290 tonnes in Q1
• gold exchange-traded funds (ETFs) continued to see outflows
• China demand – renewed investor interest due to the weakening local currency and poorly performing domestic equity markets
• People’s Bank of China (PBOC) bought 27 tonnes of gold in the first three months of the year, taking its reserves to a record high of 2,262 tonnes
• China’s stockpiling was probably an effort to guard its economy against Western sanctions in the event of a conflict over Taiwan
• demand for gold in technology recovered 10 per cent year-on-year driven by the artificial intelligence boom in the electronics sector

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Earlier:

• Goldman Sachs says its ‘base case’ gold forecast is USD 2700 by the end of 2024

This article was written by Eamonn Sheridan at www.forexlive.com.