Gold Jewellery Demand Surged 52% in Q1 2021

SEATTLE (Scrap Monster): The Gold Demand Trends Q1 2021 report published by the World Gold Council (WGC) said that the global gold jewellery demand recovered from the shock of 2020 during the initial quarter of the current year. However, the quarterly demand continued to remain subdued when compared with previous historic levels.

The jewellery demand totalled 477.4 tonnes during the quarter, recording 52% year-on-year improvement when compared with the historically weak Q1 last year. However, the demand remained muted on a longer term basis. It stood 6% lower than the five-year quarterly average of 505.9 tonnes. WGC noted that Q1 has been a traditionally weak quarter for gold jewellery demand.

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The recovery was mainly driven by China and India. The jewellery demand in China hit 191.1 tonnes- the highest quarterly demand since 2015, backed by a strong economy and a robust festival sales. The sales of heritage gold jewellery products continued to dominate. The country recorded 212% year-on-year growth rate in demand.

Meantime, the Indian demand was 39% higher y-o-y at 102.5 tonnes. The value of jewellery demand in the country was INR 431 billion- a first quarter record. Wedding-related purchases supported jewellery demand through Q1 2021. However, WGC said that the outlook for Q2 remains cautious.