Gold Global Demand:Despite high prices, global gold demand in January-March (Gold Demand)It increased by 3 percent to 1,238 tonnes. This was the strongest quarter since 2016. The World Gold Council (WGC) released its global report ‘Gold Demand Trends Q1 2024’ on Tuesday 30 April 2024. According to this, the total global demand for gold (including over the counter purchases) increased by 3 percent on an annual basis to 1238 tonnes.
The main reason behind the rise in gold prices
‘Over-the-counter’ (OTC) transactions occur directly between two parties, while ‘exchange trading’ occurs through an exchange. In January-March, demand excluding OTC declined by 5 percent to 1,102 tonnes compared to the same period in 2023. Lewis Street, senior market analyst at the World Gold Council, said the price of gold is at an all-time high since March (Gold on Record HighHas reached. There are several factors behind the recent surge, including increased geopolitical risk and ongoing broader economic uncertainty.
He said continued and strong demand from central banks, strong OTC investments and increased net buying in the ‘derivatives’ market have contributed to the rise in gold prices. Street said that historically, the world’s eastern markets, including India and China, turn around when prices are going down, while the western markets turn around when prices go up. Street said that for the first time we have seen a complete reversal. There has been a change in the prices of gold in the Indian and Chinese markets in the first quarter.
Can get strong returns in 2024
Lewis Street predicts 2024 prospects (Gold Outlook)But said that based on the recent performance of gold this year, there is a possibility of stronger returns than what was estimated at the beginning of the year. He said that if prices remain stable in the coming months, some value-sensitive buyers may re-enter the market. Investors will continue to look to gold as a safe haven as they seek clarity regarding interest rate cuts and election results.