Gold demand has hit its highest level in nine years, driven largely by surging investments in gold ETFs and cryptocurrencies backed by gold. The World Gold Council reports that total gold demand reached 1,206 tonnes in the first quarter, marking a 1% year-over-year increase. Investments in gold ETFs more than doubled to 552 tonnes, signifying investors' shift towards the precious metal, especially as central bank buying declined significantly to 244 tonnes from the previous quarter's 365 tonnes. Gold-backed cryptocurrencies have also seen substantial growth, with minting volume reaching a three-year high, amounting to over $80 million in tokens minted within the past month. This activity has led to a 6% increase in the market cap of gold-backed tokens, which now stands at $1.43 billion, alongside a 77% surge in monthly transaction volume. While the average quarterly price of gold rose to a record $2,860 per ounce, prices dipped slightly after experiencing a surge earlier this year. Notably, traditional gold demand for jewelry has fallen to pandemic-era lows, highlighting a shift in consumer preferences towards bars and coins, particularly in China.

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