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Commodities Corner: First-quarter global gold demand drops to lowest in a decade: report

Overall world gold call for fell to its lowest first-quarter degree since 2008, pushed via a slump in call for for gold bars and exchange-traded budget backed via the valuable metal, in keeping with a file from the World Gold Council released Thursday.

Total gold funding call for fell to 973 metric lots in the first quarter, down 7% from 1,047 metric lots in the first quarter of 2017, the WGC reported. The decline got here as overall funding call for dropped 27% to 287 metric lots from the same time a year earlier.

“A buoyant economy coupled with a lacklustre gold worth saw U.S. Mint Eagle gross sales fall 59% [year on year] in Q1 2018,” the file said.

Data from the U.S. Mint showed gross sales of 4,500 oz. of American Eagle gold coins in April, down 25% from the same month a year earlier.

China’s bar and gold call for fell 26% in Q1 year over year, but remained “rather healthy,” says WGC.

Gold futures GCM8, +zero.27%  rose not up to 1.4% in the first quarter. They settled Wednesday at $1,305.60 an oz. — the lowest for a most-active contract since March 1 — then moved up in digital trading following the most recent U.S. Federal Reserve financial coverage observation.

First-quarter world bar and coin call for, meanwhile, was at just about 255 metric lots, down 15% from the same time last year, the WGC file said. That got here as call for in China, the sector’s largest bar and coin marketplace, fell 26% year over year, to 78 metric lots.

Worries around the energy of the yuan, which brought about buyers to “flock to gold to give protection to their wealth 12 months in the past, have eased,” the file said, with the yuan having appreciated via round nine% for the reason that end of March 2017.

ETF inflows took an enormous 66% hit, to face at 32.4 metric lots in the first quarter, from 96 metric lots in the same quarter a year earlier.

“A rather stable gold worth and emerging interest rates contrasted with sharp equity-market volatility and periods of heightened geopolitical possibility to create combined alerts for gold buyers” in the first 3 months of this year, the WGC file said.