Business News Asia
The World Gold Council (WGC) said today (April 28) that global gold demand in the first quarter of 2022 rose 34% year-on-year to 1,234 tonnes. This is due to economic and political uncertainty driving investors to buy gold as a safe haven.
The WGC states that, “The Ukraine invasion and surging inflation were key factors driving both the gold price and demand. Gold ETFs had their strongest quarterly inflows since Q3 2020, fuelled by safe-haven demand. Holdings jumped by 269t, more than reversing the 174t annual net outflow from 2021.”
Meanwhile, investment in gold bars and coins fell 20% year-on-year to 282 tonnes in the first quarter, while jewelry demand fell 7% to 474 tonnes, mainly due to the closure of key cities in China.
The WGC forecasts that demand for these products will continue to decline in the second quarter as China expands its lockdown measures to contain the COVID-19 outbreak.
According to the WGC, global central bank gold purchases doubled in 1Q22 compared to 4Q21.
Global gold supply rose 4% to 1,156.6 tons in the first quarter, driven by higher supply from both mining and recycling, with the WGC citing price increases and the economic slowdown as driving factors. The recycling rate of gold has increased.