World's gold demand was stable in the first quarter of 2015, just 1% less than the same period last year, a report published Thursday by the World Gold Council showed, which also indicated the investment component jumped 4% compared with the same quarter of last year.
Asia led the way with China and India alone accounting for 54% of total global gold purchases in the quarter.
Strong demand also showed South East Asia in particular Malaysia, Indonesia, South Korea, Thailand and Vietnam, the industry group said.
Global gold demand totalled 1,079 tonnes, which is just 1% less than the same period last year. However, gold jewellery sales, still the most significant component of overall demand, dropped 3% in the first three months of the year, from 620 tonnes in 2014 to 620 tonnes.
Although demand for bars and coins fell 10% from the previous year, investment rose 4% to 279 tonnes, compared to 268t in the same quarter of 2014.
According to the World Council, the weakened demand for bars and coins was because retail investors, notably in India, diverted their money into equities in the wake of the country’s strong stock market performance.
In value terms, gold demand in Q1 2015 was US$42bn, down 7% compared to Q1 2014. The average gold price of US$1,218.5 per ounce was down 6% on the average Q1 2014 price.
