04 May 2017•Update: 04 May 2017
By Dilara Zengin
ANKARA
Global demand for gold sharply declined in the first quarter of 2017, according to a new World Gold Council report on Thursday.
There was an 18-percent decrease in the first quarter of 2017 compared with the same period last year, with demand hitting 1,034.5 tons, the report said.
"Slower central bank demand also contributed to the weakness. Bar and coin investment, however, was healthy at 289.8 tons, while demand firmed slightly in both the jewellery and technology sectors," it added.
The council said central banks' demand for gold continued at a much slower pace.
The banks purchased 76.3 tons of gold in the first quarter of 2017, while they bought 104.1 tons during the same period in the previous year, the report said.
The council said inflows into gold-backed exchange-traded funds of 109.1 tons were concentrated in Europe.
“Although inflows were just one-third of the extraordinary levels seen in first quarter of 2016, the demand was firm. European-listed products were the most popular, due to continued political uncertainty in the region," it said.
Investment in gold bars and coins rose by 9 percent year-on-year to 289.8 tons-equivalent to over $11 billion in the first quarter of 2017, it said.
Jewelry remained relatively weak in historical context and it was steady at 480.9 tons because of rising gold prices, it said.
"Demand was 18 percent below the 587.7 tons five-year quarterly average.
"The steady state of global demand concealed a more varied country-level picture. Gains were concentrated in India, Iran and the U.S., just outweighing modest losses elsewhere," it added.
In Turkey, jewelry demand dropped to a four-year low of 7.7 tons due to high gold prices and the recent referendum process.
