Gold's demand and price outlook are strong this year as investors and central banks continue to accumulate bullion amid lingering economic and geopolitical uncertainties, says YLG Group. (Photo: Nutthawat Wichieanbut)
Despite short-term volatility, traders have maintained their positive outlook for both the demand and price of gold for the remainder of the year as investors and central banks continue to accumulate bullion amid lingering economic and geopolitical uncertainties, according to YLG Bullion International.Pawan Nawawattanasub, chief executive of YLG Group, said gold prices declined by 16% from an all-time high of US$5,595 per ounce on Jan 29, while demand remained strong, driven by purchases of gold bars and coins for investment and accumulation by central banks worldwide.
Data from the World Gold Council showed global gold demand in the first quarter climbed to 1,231 tonnes with a combined value of $193 billion, up 74% year-on-year and marking the highest quarterly level on record.
Retail investment demand for gold bars and coins jumped 42% year-on-year to 474 tonnes, representing the second-highest level in history. Meanwhile, global central banks recorded net purchases of 244 tonnes during the quarter, up 3% from a year earlier and extending net buying for a 17th consecutive month, despite gold prices rising more than 80% on annualised basis.
