India yellow metal consumption down 17%: WGC

MUMBAI: Global gold demand declined by 13 per cent year-on-year to 1,080.8 tonnes during the January-March quarter of this year, mainly due to outflows from European-listed exchange traded fund (ETF) products, according to the World Gold Council (WGC).

The total gold demand stood at 1,238.5 tonnes during the first quarter of 2022, WGC’s Gold Demand Trends Q1 2023 stated.

Central banks have helped boost demand adding 228 tonnes to global reserves, a quarter one record high in this data series, compared to 83 tonnes in the same period last year, said the report.

“Central banks of Singapore, China and Turkey were the top buyers, while the Reserve Bank of India also added 7 tonnes to its reserves during the January-March quarter,” said WGC Regional CEO, India, Somasundaram PR.

On the supply side, there was a slight increase in the first quarter to 1,174 tonnes, with marginal 2 per cent growth in mine production and a 5 per cent uptick in recycling driven by the higher gold price.

Jewellery performance was relatively flat in the first quarter at 477.9 tonne compared to 475.3 tonnes in the corresponding period of 2022, the WGC report said.

The report stated that Chinese demand regained ground, reaching 198 tonnes in its first quarter of unfettered consumer activity since lockdown restrictions were lifted.

“Demand in China went up by 16 per cent due to the lifting of restrictions from the lockdown imposed to control the spread of COVID-19 and Chinese New Year,” Somasundaram said.

Meanwhile, demand in India declined as consumption fell by 17 per cent year-on-year to 78 tonnes during January-March 2023, mainly on account of sharp increase in domestic gold prices to over Rs 60,000 per 10 grams and continued volatility in price.