Gold demand trends show 13% drop in Q1 2023, despite record central bank purchases.

Global gold demand dropped by 13% in Q1 2023, led by weak investor demand, but offset by robust central bank purchases. Investment demand dropped by 51% to 273.7 tonnes, with gold-backed exchange-traded funds seeing modest outflows of 29 tonnes. Physical bar and coin demand grew 5% to 302.4 tonnes, led by a resurgence in purchases from China. Central bank gold demand remains a principal pillar of support for the gold market, with a record 228.4 tonnes bought in Q1 2023. Jewelry consumption remained relatively muted, rising 1% to 477.9 tonnes, with Chinese consumers buying 197.7 tonnes of gold jewelry at the start of the year.