Commodities Buzz: Global Gold Demand Spikes 34% On Year In Q1, Supply Rises 4%

28 Apr 2022 , 12:48 PM

According to latest Gold Demand Trends from the World Gold Council (WGC), World Gold demand (excluding OTC) was 34% higher year-on-year in Q1 2022, driven by strong ETF inflows. Demand increased to 1,234t in Q1. This was the highest since Q4 2018. Gold ETFs had their strongest quarterly inflows since Q3 2020. Holdings jumped by 269t, fuelled by safe-haven demand. Bar and coin investment was 20% below the very strong Q121. Demand was healthy on a longer term basis, 11% above its five-year quarterly average. Consumer demand for gold jewellery lost momentum in Q1. Demand declined 7% y-o-y, largely reflecting softer demand in India and China. Central bank buying continued in Q1. Global official gold reserves increased by 84t during the quarter. The total supply of gold in Q1 increased 4% yo-y. A strong rise in both mine production and recycling drove growth. Investment has scope for significant growth in 2022, although the potential outcomes are fairly binary; central banks are expected to remain modest net buyers, while consumer-driven demand faces challenges.

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