AFP, London :
Global gold demand fell 18 percent in the first quarter from a year earlier as US investors abandoned the precious metal after Donald Trump’s election win, industry figures showed Thursday.
After a “really good” first quarter of 2016 for gold demand, the first three months of this year was “not a strong quarter”, World Gold Council director John Mulligan told AFP.
“In 2016 demand was concentrated on one source, which was professional investors, especially in the US” where activity was focussed on Exchange Traded Funds (ETFs) — investment funds backed by physical stocks of gold, the WGC director added.
Demand stood at 1,034.5 tonnes between January and March 2017, its lowest level in 11 years.
At the same time last year, demand stood 1,261.8 tonnes.
Cautious US investors rushed to the ETFs before the US presidential election, but are now shifting their attention to riskier products-but it is a different story in Europe.
“There are multiple elections coming up, even in Paris… the election is not over. People are uncertain, it is generally good for gold,” said Mulligan.
Gold is viewed as a haven investment in times of economic uncertainty.
Despite enthusiasm from European investors, the demand for gold through ETFs dropped by 68 percent to 109.1 tonnes in the first quarter.
Global gold demand fell 18 percent in the first quarter from a year earlier as US investors abandoned the precious metal after Donald Trump’s election win, industry figures showed Thursday.
After a “really good” first quarter of 2016 for gold demand, the first three months of this year was “not a strong quarter”, World Gold Council director John Mulligan told AFP.
“In 2016 demand was concentrated on one source, which was professional investors, especially in the US” where activity was focussed on Exchange Traded Funds (ETFs) — investment funds backed by physical stocks of gold, the WGC director added.
Demand stood at 1,034.5 tonnes between January and March 2017, its lowest level in 11 years.
At the same time last year, demand stood 1,261.8 tonnes.
Cautious US investors rushed to the ETFs before the US presidential election, but are now shifting their attention to riskier products-but it is a different story in Europe.
“There are multiple elections coming up, even in Paris… the election is not over. People are uncertain, it is generally good for gold,” said Mulligan.
Gold is viewed as a haven investment in times of economic uncertainty.
Despite enthusiasm from European investors, the demand for gold through ETFs dropped by 68 percent to 109.1 tonnes in the first quarter.
