(MENAFN- ProactiveInvestors) Gold demand fell in the first quarter of 2015 according to the as Chinese investors swapped the metal for shares.
“Rallying domestic equity markets ate into Q1 gold demand in China both investment and jewellery” said the WGC.
Demand was 1% lower in total with jewellery sales the worst hit.
Jewellery makes up almost 60% of the overall demand for gold with China and India by far the largest markets.
Purchases fell by 3% to 600t as a 10% fall in China more than outweighed a 22% rebound from consumers in India.
“A 22% increase in Indian jewellery demand was more a reflection of unusual weakness in the year-earlier period than any particular strength in Q1 2015” the report said.
Demand in the country was also boosted as the government removed the ban on gold coin imports in February.
Concerns over the situation in Greece boosted investment demand by 4% with Europe showing especially strong as the price in euros soared as the European currency declined.
Exchange traded funds saw an inflow of 25.5t over the period the first for two years.
Investment demand overall climbed 63% over the previous three months despite a fall in purchases of bars and coins of 28t. US-listed products were the main beneficiaries but German and UK-listed ETFs also saw inflows said the WGC.
Central banks net purchases were steady year-on-year at 119.4t
Russia remained a stawart buyer with net purchases over the quarter to just over 30t despite little activity in January and February and bringing total gold reserves to almost 1240t.
Mine production grew by 2% year-on-year to 729.2t.
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