Gold Demand in Technology Sector Recorded Notable Surge

SEATTLE (Scrap Monster): The gold demand in the technology sector rose by 1% over the previous year to total 81.7 tonnes in the initial quarter of the current year, said the latest Gold Demand Trends Report published by the World Gold Council (WGC). This is the highest total for a first quarter since 2018. Meantime, the demand is likely to encounter challenges in 2022, the trade body noted.

WGC noted that the electronics market registered broad recovery from the Covid-19 blow during the quarter. However, the pace of growth slowed, with the market staring at more challenges in the near-to-medium term.

The Covid-19 pandemic continues to remain as a serious concern, with dozens of Chinese cities hit with total or partial lockdown. Incidentally, major industrial and financial hubs such as Shanghai continue to remain impacted. The electronics industry faces further challenges from the ongoing conflict in Ukraine, with major firms halting shipments to Russia. Furthermore, the rising inflation situation across the globe also presents headwinds to the consumer electronics sector.

Gold used in the electronics sector strengthened during Q1 this year. Other industrial applications recorded marginal year-on-year increase by 1% to 12 tonnes, whereas the dental demand recorded significant decline by 7% to total around 3 tonnes in Q1 2022.

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