pokerset| World Gold Council: Global gold demand remains firm, pushing gold prices to record highs

According to the World Gold Council's report on Global Gold demand Trends in the first quarter of 2024, total global gold demand, including over-the-counter trading, rose 3 per cent to 1238 tonnes in the first quarter from a year earlier, the strongest first-quarter demand performance since 2016. Total global gold demand, excluding over-the-counter trading, fell 5 per cent to 1102 tonnes in the first quarter compared with the same period in 2023.

Robust investment demand from over-the-counter markets, continued purchases by global central banks and rising demand from Asian buyers pushed the average price of gold to an all-time high of $2070 an ounce in the first quarter. The price is 10% higher than the same period last year and 5% higher than the previous quarter.

Central banks around the world continued to buy gold rapidly, with the world's official gold reserves rising by 290 tons this quarter. In the face of market volatility and higher risks, central banks around the world continue to buy gold in large quantities, highlighting the important role of gold in the portfolio of international reserves.

In terms of investment demand, global investment in gold bars and coins increased by 3% year-on-year to 312Pokerset.3 tons, basically the same as the level of 312.9 tons in the fourth quarter of 2023.

Global gold ETF outflows continued, with total positions falling by 114t, mainly from funds in North America and Europe, but a small portion of these outflows were offset by inflows from funds in Asia. The inflow of Chinese market funds leads Asia.PokersetChinese investors' interest in gold has been revived due to the weakness of the renminbi and the poor performance of the domestic stock market.

Despite record highs, global demand for gold jewellery has remained resilient, falling just 2 per cent to 479 tonnes from a year earlier. The rise in demand for gold ornaments in Asia offset the decline in demand in Europe and North America.

In addition, global demand for technology gold rebounded by 10 per cent to 79 tonnes from a year earlier, driven by an artificial intelligence boom in the electronics industry.

On the gold supply side, gold production rose 4 per cent year-on-year to 893 tons, a first-quarter high. In addition, some investors took advantage of higher gold prices to take profits, and the total amount of gold recovered in the first quarter reached the highest quarterly level since the third quarter of 2020, up 12 per cent from a year earlier to 351 tonnes.

Louise Street, senior market analyst at the World Gold Council, said, "Gold prices have climbed to record highs since March despite traditional resistance to a stronger dollar and 'chronically high' interest rates.

"there are a variety of factors behind the recent surge in gold prices, first of all, increased geopolitical risks and persistent superimposed macroeconomic uncertainties, which have jointly pushed up investors' safe-haven demand for gold. In addition, continued gold purchases by global central banks, strong over-the-counter investment and an increase in net purchases in financial derivatives markets have also contributed to the rise in gold prices.

"interestingly, we are seeing a shift in the behaviour of investors in the East and the West. Generally speaking, investors in eastern markets are more sensitive to changes in gold prices and tend to buy bargains, while Western investors are attracted by the rising trend of gold prices and tend to chase higher. But in the first quarter of this year, we saw that change, with investment demand in markets such as China and India soaring as gold prices soared.

Looking ahead, based on gold's recent performance, gold's return in 2024 is likely to be much higher than we expected at the beginning of the year. If prices level off in the coming months, some price-sensitive buyers may re-enter, while investors will continue to see gold as a good safe haven while waiting for interest rate cuts and election results to be clear. "

Important data inventory of the Global Gold demand trend report in the first quarter of 2024:

In the first quarter of 2024, the average gold price in the London gold and silver market hit a record $2070 an ounce, up 10 per cent at the same time and 5 per cent month-on-month.

In the first quarter of 2024, total global gold demand (excluding over-the-counter trading) was 1102 tons, down 5% from a year earlier; total gold demand, including over-the-counter markets and other sources, was 1238 tons, up 3% from a year earlier and the strongest first-quarter demand since 2016.

In the first quarter of 2024, the world's central banks bought 290 tons of gold, the highest demand for gold purchased by central banks in the first quarter of the year, up 1% from a year earlier.

In the first quarter of 2024, global gold investment demand (excluding over-the-counter trading) was 199 tonnes, down 28 per cent from a year earlier. The total global demand for gold bars and coins was 312.3 tons, up 3 per cent from the same period last year. Total positions in global ETF funds fell by 114 tonnes to 3113 tonnes, resulting in outflows of about $6 billion, while total assets under management reached their highest level in nearly two years to $222 billion as gold prices rose.

Although gold prices repeatedly hit record highs in the first quarter of 2024, global consumer demand for gold jewelry fell slightly by 2 per cent year-on-year to 479 tons, but it was still higher than the average of 465 tons in the first quarter of the past five years.

In the first quarter of 2024, the demand for gold in the technology industry surged 10% year-on-year to 79 tons, mainly due to the recovery in demand for gold in the electronics industry, which surged 13% in the first quarter from a year earlier to 64 tons.

In the first quarter of 2024, the total global gold supply reached 1238 tons, an increase of 3 per cent over the same period last year. Of this total, total gold recovery reached its highest quarterly level since the third quarter of 2020, up 12 per cent year-on-year to 351 tonnes. The output of gold mines reached 893 tons, an increase of 4% over the same period last year.