Global gold demand declined by 18% during first quarter of 2017

Global gold demand declined by 18 per cent during the first quarter of 2017, to 1,034 tonnes. According to the World Gold Council's latest Gold Demand Trends report, the fall was largely because demand in the first quarter last year was exceptionally high.

Inflows into Exchange Traded Funds was 109 tonnes, which is a fraction of last year's near-record inflows of 342 tonnes. Slower



central bank demand also contributed to the weakness, with 76 tonnes added to reserves, compared with 104 tonnes added in the first quarter of 2016.

The report said China's purchasing program was on pause during the quarter, as its foreign exchange reserves remained under pressure. But retail investment demand was strong, rising 9 per cent, year-on-year.