Global Demand for Gold Jewellery Steadied in Q1 This Year

SEATTLE (Scrap Monster): The world gold jewellery demand remained more or less unchanged during the first quarter of 2018. The demand totaled 487.7t in Q1 2018, when compared with the demand of 491.6t in Q1 2017. The weak quarter in India was more or less offset by the Chinese boost in demand on account of holiday shopping. The US quarterly gold demand in Q1 2018 was the highest in nearly a decade. Turkey too reported strong growth in gold jewellery demand.

The Indian jewellery demand declined sharply by 12% over the previous year to 87.7t in Q1 2018. The demand had totaled 99.2t in Q1 2017. The local gold price traded at a small discount to the international price for much of the quarter. Moreover, there were only 7 auspicious wedding days during Q1 this year, as compared with 22 during the corresponding quarter last year.

The Chinese jewellery demand surged higher by 7% to hit a three-year high of 187.8t. The increased purchases during the week-long Lunar New year holiday season were further boosted by Valentine’s Day purchases. The demand for 18-carat K gold and 3D hard gold jewellery continued to increase during the quarter. The demand for traditional 24-carat jewellery remained subdued.

Among other Asian countries, Vietnamese jewellery demand surged higher by 12% to 5.1t. On the other hand, South Korean demand fell sharply by 5% to hit the lowest quarterly level since 2012.

Turkish jewellery demand reported the strongest growth, rising by 19% over the year to 9.9t, despite high local gold prices. Jewellery demand in Iran and the UAE has declined sharply by 16% and 23% respectively year-on-year. Conversely, Egypt recorded 6% demand growth.

The U.S. gold jewellery demand grew 2% to 23.3t, the highest Q1 demand since 2009. European demand edged higher by 1% to 12.9t. Demand in the U.K. stabilized, whereas Italian demand declined by 2% to 2.7t.