London: The demand for Gold is increasing, despite a record economic performance by the United States. As per a report published by the group World Gold Council, the demand for Gold in the first quarter of 2019, was more than a whopping 1,053 tonnes. The World Gold Council clarified that historic purchase by the central banks of various countries and the increased demand for Gold Bars and coins along with the ornaments is said to be the cause for this increase.
Last month itself, it was revealed that the US economy recorded a growth of 3.2% for the first quarter. Following that, the US stock markets recorded a jump of 15% in the first four months of 2019. Record performances have been noted even in the fuel production and weapons sale in the United States. The increasing Gold demand, despite the excellent performance of the US economy, attracts attention.
The World Gold Council has made a special mention of the factors, performance of the US economy and stock markets while giving the statistics for the first three months of 2019. Earlier, the US economy, value of the USD and Gold demand always used to be working in opposite directions. But this time, the Gold demand at the international level is seen to be rising, despite an excellent performance by the US economy. The Gold demand has been recorded to be 1,053.3 tonnes for the first quarter of 2019.
530 tonnes out of this was used for ornaments, and nearly 300 tonnes were in coins and Gold bars. In the first three months, a demand of 125 tonnes in Gold ornaments has been recorded, in India, which is the highest in the last four years. The demand for Gold coins and bars has seen a rise of four per cent in the first quarter, taking it to 33.6 tonnes. The World Gold Council said that the increase in the demand for Gold bars and coins from India is a major factor in the record performance of Gold.
There has been a significant purchase by the central banks of various countries, and this is historic increase after 2013. The central banks have purchased nearly 145 tonnes of Gold, in the first three months of 2019. Out of this, Russia has purchased 55 tonnes, and China has purchased 32 tonnes. The Indian Reserve Bank also is said to have purchased 10 tonnes of Gold.
The rise in Gold demand is an indication of economic uncertainty. The trade war between the United States and China, trade disputes between the United States and Europe,are exerting pressure on the global economy. Country like China is feeling the stress, and therefore, the investors seem to be turning to a safer investment in Gold.
Russia and China have started a spate of Gold purchases, and at the same time, the Gold demand from India is also increasing. The Gold demand may only increase in the near future, instead of reducing. As per economists, Gold rates also will increase in the same proportion.