Demand for gold at 4-year low
According to the World Gold Council’s latest Gold Demand Trends report, global demand for bars and coins declined by 39% to 283 tonnes in Q1 2014, the lowest level in 4 years.
China’s gold demand fell 18% in the first 3 months of the year as investors bought fewer bars and coins, offsetting record demand for jewellery. Other major purchasers such as India also recorded a drop in demand.
Lower demand from China, which surpassed India as the world’s largest gold consumer last year, was blamed on price-sensitivity as gold appreciated nearly 8% in 2014. Factors that caused a decrease in India were duty and restrictions on gold imports which was coupled with restrictions on free movement of cash and other assets.