UNITED KINGDOM May 12 2016 5:45 PM
LONDON (Scrap Register): Global gold demand shot up to 1,289 tons during the first quarter of this year, an increase of 21% from the first quarter of 2015, as per the latest figures from the World Gold Council.
According to WGC, it was the culmination of five factors that helped the gold market see its strongest first quarter on record. The biggest factor behind gold’s unprecedented performance from January to March was a resurgence of global investment demand, specifically in exchange-traded funds.
The report highlighted that ETFs saw inflows of 363.7 tons, more than reversing the total outflows seen in 2014 and 2015.
The five factors that led to the gold market’s 16% rally in the first three months of the year, according to WGC, are: growing instability in equity markets, a weaker U.S. dollar, implementation of unorthodox monetary policy – including the introduction of negative interest rates, – the return of pent-up demand and strong price momentum.