Global Gold Demand Shows Extreme Signs of Weakness
Recent reports reveal that global gold demand has severely slowed down and has shown signs of extreme weakness. The global demand for gold was about 973.5 tons during the 1st quarter of 2018, which is a 7 percent decrease if a comparison is drawn on a year to year basis. The statistics were revealed by the Council.
The trade group, while commenting on the dip in gold demand, said that the 15 percent decline in investment of gold bars is one of the biggest reasons for the decline in gold demand on the whole. The demand for gold bars dropped to 254.9 tons, while investors from Germany, US and other major economies such as China shied away from buying new gold.
Moreover, statistics also reveal that spot gold rose increased by 0.3 percent, as it settled at $1308.54 an ounce on Thursday morning before the talks between the two biggest economies in the world.
Gold demand, has therefore, disappointed investors, as it slumped to its weakest in the 1st quarter. This is not it because this is the weakest demand for gold since the world financial crisis. According to the World Gold Council, the rising interest rates by the Fed have impelled investors to seek opportunities where there are greater returns.
The total global demand for gold remained at 973.5 tons during the 1st quarter of the year. The decline in demand also coincided with the fact that the prices were holding in their narrowest range of the quarter in over 10 years.
The global economic growth overall has been quite solid but the markets have remained volatile. Though the environment, in general, remained positive in the first quarter, gold demand has slumped to its lowest in over a decade.
Sources also reveal that 32.4 tons of gold went back to gold backed exchange traded funds during the first three months of 2018. This figure as well is down by 2/3rd as compared to the same quarter in the past year. Jewelry consumption has also declined during the start of the year and China reported its weakest and slowest quarter since 2008.