April 30, 2020 / 12:00 PM / a month ago

Gold demand rises as investor buying spree offsets jewellery plunge- GFMS

    LONDON, April 30 (Reuters) - Global gold demand rose in the
first quarter as a surge in investment as the coronavirus
outbreak convulsed global markets offset sharp falls in appetite
from jewellers, industry and central banks, an industry report
said on Thursday. 
    Coronavirus lockdowns have closed swathes of the global
economy but triggered a wave of interest in gold from investors
who see it as a safe place to park money. 
    Exchange traded funds (ETFs) storing bullion for investors
expanded their stockpile by 299.6 tonnes to record highs over
January-March, said the report by consultants Refinitiv GFMS. 
    That offset a 40% year-on-year fall in consumption of gold
by jewellers to 308.6 tonnes, a 19% decline in use by industry
to 75.3 tonnes and an 11% dip in purchases by central banks to
129.3 tonnes, the report said. 
    Retail investment -- purchases of bars and coins by
individuals -- also fell 11% compared to the first quarter of
2019, to 239.7 tonnes.
    Total global gold demand was 1,069.6 tonnes, up 2% from
January-March 2019, Refinitiv GFMS said. 
    It said it expected gold prices – currently at eight-year
highs around $1,700 an ounce -- to average $1,637 an ounce in
2020 and possibly move above $1,800 later in the year.

    DEMAND (TONNES)   
                                 Q1 2020   Q1 2019   % change
 Mine Production                    842.2     814.6        3%
 Total Scrap Used in                299.2     305.2       -2%
 Fabrication                                         
 Net Hedging Supply                   9.3     -24.9     -137%
 Total Supply                     1,150.7   1,095.0        5%
                                                             
 Jewellery Fabrication              308.6     511.1      -40%
 Industrial Demand                   75.3      93.3      -19%
    - Electronics                    55.9      68.3      -18%
    - Dentistry                       5.5       6.6      -17%
    - Other Industrial &             13.9      18.4      -24%
 Decorative                                          
 Net Official Sector                129.3     144.9      -11%
 Retail Investment                  239.7     269.9      -11%
    - Physical Bar                  151.1     190.9      -21%
 Disinvestment/Investment                            
    - Official Coins                 88.6      79.1       12%
 Physical Demand                    752.9   1,019.3      -26%
                                                             
 ETF Change in Holdings             299.6      38.1      687%
 Exchange Inventory (Change in       17.1     -11.4     -251%
 Holdings)                                           
                                                             
 TOTAL DEMAND                     1,069.6   1,046.0        2%
    *Source: Refinitiv GFMS   
    
           

 (Reporting by Peter Hobson; Editing by Kirsten Donovan)
  
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below