Gold market sees its best start in eight years as Asian retail demand and central bank purchases dominate Q1 - World Gold CouncilKitco NEWS has a diverse team of journalists reporting on the economy, stock markets, commodities, cryptocurrencies, mining and metals with accuracy and objectivity.
“There is strong anecdotal evidence and other data that points to the fact that there is strong demand in Asia, but it's happening more in the OTC market,” he said. “Asian consumers have been coming with a lot of force into the gold market.
“People are trying to figure out where in the cycle we are; the market still has room to grow, especially amongst Western investors,” he said.One specific area of growth for gold remains central bank demand. The WGC said that central bank net demand totaled 290 tonnes in the first quarter – the strongest start to any year on record.
“When the only reserve currency is the dollar, that can sometimes create constraints for some trading partners. And when you have a foreign reserve, such as gold, that doesn't carry any counterparty risk, that can provide a sense of trust. Holding some gold can be very beneficial for these countries,” he said.
The WGC speculates that the gold market could continue to struggle as the Federal Reserve looks to delay the start of its easing cycle through the summer. “Nevertheless, demand was 13% above the ten-year average of 162t as demand held broadly in line with levels that were typical in the years prior to the pandemic,” the report said.
At the same time, European jewelry purchases edged lower in the first quarter, declining by 2% year-over-year to 11 tonnes. has a diploma in journalism from Lethbridge College and has more than a decade of reporting experience working for news organizations throughout Canada. His experiences include covering territorial and federal politics in Nunavut, Canada. He has worked exclusively within the financial sector since 2007, when he started with the Canadian Economic Press. Neils can be contacted at: 1 866 925 4826 ext. 1526 nchristensen at kitco.
Malaysia Malaysia Latest News, Malaysia Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: KitcoNewsNOW - 🏆 13. / 78 Read more »