Global gold demand fell 18 percent in the first quarter of 2017, according to a report by the World Gold Council, released on Thursday.
According to the same source, American professional investors are massively abandoning the yellow metal since the election of Donald Trump.
At 1,034.5 tones between January and March 2017, compared with 1,261.8 tones in the first quarter of 2016, global gold demand is at its lowest level for a first quarter since 2010, according to revised data from the World Gold Council.
As US investors rushed to ETFs before the US presidential election to protect themselves from the risk, the US market has now regained a taste for Risk, unlike Europe.
“With the elections approaching in several countries, while the result of the French elections is not yet known, there is a lot of uncertainty in Europe, and it benefits gold, “said John Mulligan.
The interest of European investors does not, however, prevent the demand for gold in the form of ETF to have dropped by 68% to 109.1 tones in the first quarter.
Another sign of thinning for gold, demand begins to resume in India and China, the two-first buyers of physical gold.
The demand for either coins or bullion has risen by 30% in China to 105.9 tons.
While the Chinese authorities reformed their financial system to avoid a bubble property, savers relied on physical gold to preserve their economies.
In India, demand for jewelry increased by 16% to 92.3 tons, while the sector suffered at the end of 2016 from the government’s demonetization effort.
Central banks have showed diminished demands for gold purchases; China’s purchasing program was on pause, during the first quarter as its foreign exchange reserves remained under pressure. Sales, once again, were sparse.