(Kitco News) – The gold market went back to basics in the first quarter of 2021 as demand for jewelry and physical bars and coins supported a sharp drop in investment demand, according to the latest research from the World Gold Council (WGC).
In its quarterly Global Demand Trends report, the WGC said that physical demand for the precious metal totaled 815.7 tonnes, virtually unchanged compared to the fourth quarter of 2020. However demand was down 23% compared to the fourth quarter of last year.
In an interview with Kitco News, Juan Carlos Artigas, head of research at the World Gold Council, said that shifting demand in the gold market continues to demonstrate the precious duality as an important strategic asset.
“Investment demand can have a significant influence on price, but also you shouldn’t completely, disregard what is happening in other parts of the market because that can create support for the price. That is what we are seeing right now in practice,” he said.
Meanwhile, the average gold prices in the first three months of 2021 was 13% higher compared to the first quarter of last year; however, it was down 4% compared to the previous quarter.