Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

Global Gold Demand Rises by 34% in 1st quarter of 2022

Sun 01 May 2022 | 05:09 PM
walid Farouk

Global demand for gold increased by about 34% during the first quarter of 2022 to record 1,234 tons, the highest level since the fourth quarter of 2018, according to a report by the World Gold Council (WGC).

The high global demand for gold was driven by two main factors: the repercussions of the Russian invasion of Ukraine and inflationary pressures, according to the report.

Gold jewelry demand also fell 7 % year-on-year to 474 tonnes, thus ending the growth wave that was witnessed throughout 2021.

Moreover, the report added that the decline in consumer demand for gold, in part, is due to an increase in prices, as the average price of an ounce of gold during the first quarter of 2022 scored about $1877.2, which was approximately 5% higher than the first quarter of 2021.

In addition, the central banks purchases of gold during the first quarter of 2022 declined, to record 83.8 tons, compared to 117.5 tons during the same quarter of 2021, amid geopolitical tensions and accelerating inflation.

The total gold supply increased 4 percent on the year, driven by strong mine production, which hit 856 tonnes, the report said.

The supply of recycled gold also jumped about 15% on an annual basis, to 310.5 tons, the report added.

Contributed by Nada Mustafa