“World Gold Council Reports Decline in Global Demand for Gold in Q1 2023, Despite Central Bank and Chinese Consumer Purchases”

LONDON (Reuters) – Global demand for the yellow metal declined in the first three months of 2023, the World Council said on Friday, as large purchases by central banks and Chinese consumers were offset by lower buying by investors.

In its latest quarterly report on demand trends, the council stated that the total demand reached 1,081 tons, down 13 percent from the same quarter of last year.

About half of the demand for gold comes from jewelers, while the rest comes from investors and countries. The precious metal is considered a safe haven asset and investors usually buy it more during times of economic turmoil.

Demand rose to an 11-year high in 2022.

This comes at a time when it is hovering near all-time highs above 2000 an ounce.

The council indicated that central banks bought 228 tons of gold during the first quarter, which is the largest amount that central banks buy in the first quarter of any year since the start of data recording in 2000.

The demand for jewelry in China reached 198 tons, the largest quarterly demand since the first quarter of 2015, after the end of Corona restrictions unleashed consumer spending.

Meanwhile, US customers worried about banking and economic turmoil bought 32 tons of gold bars and coins, the highest level in any quarter since 2010.

On the other hand, the board mentioned that purchases of gold bars and currencies declined in Europe, and the demand for jewelry in India fell to the lowest level in three years.

The Board expected that investment demand would grow this year and central bank purchases would remain strong, albeit less than the high level witnessed last year.

(Prepared by Marwa Gharib for the Arabic Bulletin – Edited by Suha Jadu)