Insights

In this episode of Unearthed, hosts John Reade and Joseph Cavatoni, Senior Market Strategists at the World Gold Council, discuss the highlights from the Q1 Gold Demand Trends Report.

Last week, optimism from a US – China tariff truce and easing inflation was tempered by slower US spending, a sharp drop in China’s bank lending, and Japan’s economic slowdown, even as Europe posted strong growth. Moody’s became the last of the three ratings agency to downgrade the credit rating of the US late on Friday. While the technical fallout may be minimal, it could usher in a sentiment hit on Monday.

Stability in prices could prompt a resurgence in demand. Consumer sentiment that the downside to gold prices is limited would reinforce gold’s appeal as a reliable investment.

Continued gold price strength and the US-China trade tensions pushed Chinese gold ETF demand to a record high in April. Gold futures trading activities in Shanghai also surged to unseen levels. Wholesale demand improved and the PBoC announced another gold purchase.

Last week saw a raft of central bank announcements: the Fed kept rates unchanged, while China and the UK cut. Meanwhile, trade tensions eased as the US reached a deal with the UK and began talks with China. Key events to watch this week include changes in global trade uncertainties, US CPI prints and gold market positioning shifts.

Last week, markets absorbed strong US earnings and labor data, steady BoJ policy, weak Chinese factory activity, and stronger EU growth, reflecting mixed global momentum.

Central banks continue momentum of gold purchases into March 2025.

Last week, market volatility continued, but signs of easing trade tensions emerged. Concerns over the Fed’s independence also eased. But the IMF downgraded global and regional growth forecasts amid trade risks.

In this episode of Unearthed, hosts John Reade and Joseph Cavatoni, Senior Market Strategists at the World Gold Council, welcome George Cheveley, Portfolio Manager at Ninety One, for an insightful look into the dynamics of the gold mining equities market.

Tariff uncertainty continued to weigh on global markets last week. Weak US data and new chip export restrictions on China added to concerns. Growth worries drove ECB rate cuts while China’s economy showed resilience in Q1.

Seasonal and wedding related purchases may support gold demand this month and next. Investor interest is likely to strengthen as gold’s appeal as a safe-haven asset and portfolio diversifier heightens amid global economic uncertainties and financial market volatility.

Another exceptional month for the gold price and trade tensions with the US led to continued boom in retail investment. Meanwhile, China’s official gold holdings rose five months in a row. And wholesale demand also picked up seasonally, resulting in an improving local gold premium.

Trade tensions steered sentiment last week. Trump's temporary tariff relief boosted optimism, but mixed economic data and lingering trade uncertainty kept volatility elevated.

In this episode of Unearthed, co-hosts John Reade and Joe Cavatoni from the World Gold Council deep dive into the global performance of gold ETFs for Q1 2025.

Last week, the US rattled global markets with unexpectedly aggressive reciprocal tariffs, prompting swift retaliation from China and potential countermeasures from others. The aggressive moves raised fears of slower growth, higher inflation, and job losses, overshadowing otherwise positive economic data.

Demand for gold from central bankers continues, with data available for February showing reported global central bank gold reserves rising by 24t. Thus far, Poland, China, Turkey, and the Czech Republic have led gold demand from emerging market central banks. 

Markets focused on trade tensions last week, as a new 25% US auto import tariff and upcoming retaliatory tariffs weighed on sentiment. Stagflation worries added to the pressure.

Gold finally closed above the US$3,000/oz threshold. It has so far rejected technical resistance at $3,040/3,050/oz and the market is seen as highly overstretched, with a possible (healthy) pause in the core uptrend on the cards.

In this episode, hosts John Reade and Joe Cavatoni from the World Gold Council interview Sakhila Mirza, Deputy Chief Executive and General Counsel at the London Bullion Market Association (LBMA) to learn more about the LBMA’s role in the global gold and precious metals industry.

Gold’s price momentum remains strong, breaching records, with domestic gold prices seeing gains of 13% y-t-d. Price rise dampens jewellery purchases, boosts old gold sales, while investment demand is sustained: gold ETFs saw healthy inflows in February, though below January’s peak.