01-May-2025 16:35

COMEX Gold ranked as a slide under $3300 per ounce mark extended. Gold markets eye demand trends in a key end user segment for near term price outlook. World Gold Council or WGC stated in its latest Gold Demand Trends update that total Q1 global gold demand (inclusive of OTC investment) was 1% higher y/y at 1,206 tonnes (t) ' the highest for a first quarter since 2016. Central banks bought 244t of gold in Q1, a slowdown from the previous quarter but comfortably within the quarterly range of the last three years. A sharp revival in gold ETF inflows fuelled a more-than-doubling of total investment demand to 552t (+170% y/y); its highest since Q1'22. Bar and coin demand remained elevated at 325t ' 15% above the five-year quarterly average. China drove much of this increase, posting its second-highest quarter of retail investment. Technology demand of 80t was unchanged y/y.

However, Gold jewellery demand fell sharply in the record price environment though: volumes reached their lowest since demand was halted by COVID in 2020. Total Gold demand in value terms almost matched the Q4 record of US$111bn. The slight uptick in demand volumes translated to a 40% y/y rise in value, due to the surging price, WGC noted. Total Q1 gold supply grew 1% y/y to 1,206t. Global Gold mine production inched up to a Q1 record of 856t. In contrast, recycling declined 1% y/y as consumers held onto their gold hoping for higher prices.

COMEX Gold also fell on firm US dollar and weak trends in other commodities like Crude oil. The metal currently trades down 2.60% at $3230 per ounce. These are two week low levels for the metal.

Indian Gold demand in the March quarter was down 15 per cent at 118 tonnes against 139 tonnes logged in the same period a year ago, largely due to high prices suppressing jewellery purchases.

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