Paste your Google Webmaster Tools verification code here
Dubai | May 12, 2016 | 11:15
Gold demand reached 1,290 tonnes Q1 2016, a 21% increase year-on-year, making it the second largest quarter on record. This increase was driven by huge inflows into exchange traded funds (ETFs) – 364t – fuelled by concerns around the shifting global economic and financial landscape, the latest report by World Gold Council (WGC) showed. Higher prices and industrial action in India pushed global demand for jewellery down (-19%), while total bar and coin demand was marginally higher (+1%). Central banks remained strong buyers, purchasing 109t in the quarter. Total supply increased 5% to 1,135t. Hedging by producers (40t) supported an increase of 56t in mine supply, although countered by a marginal decline in recycling.
Inflows into ETFs of 363.7t were the highest since Q1 2009 as sentiment towards gold improved markedly. “Shifts in the global economic and financial landscape have created a positive environment for gold investment in recent months,” WGC said, adding, “The Negative Interest Rate Policies (NIRP) implemented by central banks in Japan and Europe represent a shift to ‘unconventional policies’ which create ‘great uncertainty’.”
2015 © Semantics Global Media FZ LLC. All Rights Reserved.