Global gold demand drops in first half as speculative Chinese investors stay away
In contrast, global demand for gold bars and coins, as well as for jewellery has improved in the first half of 2017
Global demand for gold dropped 14 per cent to 2,003.8 tonnes in the first half of 2017, as Chinese gold-backed exchange traded fund (ETF) holdings shrank in the second quarter of the year, while Europe which dominated the ETF market, accounted for 76 per cent of inflows in the six months, according to the World Gold Council’s report on Thursday.
Chinese gold-backed ETF holdings having risen more than six-fold in 2016, dropped by 4.8 tonnes to 20 tonnes in the second quarter at the end of June, the report said, adding that this volatility in part reflected the “speculative investment behaviour” that is more prominent in China than in many other markets.