World Gold Council: Demand for gold declined during Q1 2023‎

World Gold Council said today, Friday, that global demand for the yellow metal declined in the first three months of 2023, as large purchases by central banks and Chinese consumers were met with a decrease in investor buying.

According to “Reuters”, the council stated in its latest quarterly report on demand trends that the total demand amounted to 1081 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 asset, and investors usually buy it more in times of economic turmoil

Demand rose to the highest level in 11 years in 2022.

This comes at a time when gold prices are hovering near all-time highs above $2,000 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, which is 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 council stated 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 council suggested that investment demand would grow this year and that central bank purchases would remain strong, albeit lower than the high level witnessed last year.