Gold demand showed modest improvement in Pakistan, registering an increase of 2% to 9.9 tonnes during the period between January and March 2023, as compared to 9.7 tonnes recorded in the same period of the previous year earlier, data compiled by the World Gold Council (WGC) showed on Friday.
On a quarterly basis, the demand for the yellow metal registered a decline of 2% as compared to 10.1 tonnes in the previous quarter.
The development coincides with gold prices in Pakistan having reached record highs, traders said. A tola of gold surged by Rs2,600 to Rs225,300.
As per data released by the WGC, global gold demand, excluding over-the-counter (OTC), was 13% lower year-on-year (YoY) basis, at 1,081 tonnes in 1Q23.
Inclusive of OTC, total gold demand strengthened 1% YoY to 1,174 tonnes as recovery in OTC investment – consistent with investor positioning in the futures market – offset weakness in some areas.
“Demand from central banks experienced significant growth during the quarter. Official sector institutions remained keen and committed buyers of gold, adding 228 tonnes to global reserves,” added the report.
Internationally, gold made another run toward record highs on Thursday as US banking concerns accelerated a flight to the safe-haven asset and sustained its stellar rally driven by bets for a pause in US rate hikes.
Spot gold was up 0.3% at $2,045.79 per ounce after climbing earlier to $2,072.19, shy of a record high of $2,072.49.
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“We continue to see healthy upside for investment this year, while the picture for fabrication (jewellery and technology) is more muted,” said the World Gold Council. “Further robust central bank buying is expected, albeit below 2022’s record. Modest growth is likely in both mine production and recycling,” it added.
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