The global economy continues to experience instability, which leads to an increase in demand for gold from major central banks around the world. They continue to acquire gold in order to strengthen their reserves and to protect themselves during periods of economic crisis.
According to the latest report "Gold Demand Trends" from the World Gold Council, in the first quarter of this year, demand for gold from central banks set a new record, reaching 228 tons.
Gold continues to play a key role in international reserve portfolios during times of high market volatility, said Shaokai Fang, head of Asia Pacific (except China) and global central banks.
However, the demand for gold jewelry remained relatively unchanged in the first quarter of this year, amounting to 478 tons. In China, demand for gold items recovered, hitting 198 tons in the first quarter after restrictions on consumer activity caused by the pandemic were lifted.
At the same time, gold consumption in India decreased by 17% year-on-year to 78 tons in the first quarter of 2023. The main factor influencing purchases was the sharp rise in gold prices within the country.
With regard to investment demand for gold, the situation was mixed in the first quarter of this year. According to Shaokai Fang, in March, there was an increase in investment demand for gold in ETF (Exchange Traded Fund), which was caused by systemic risk to the US economy and which partially offset outflows in January and February. As a result, outflows in the first quarter amounted to only 29 tons.
