Investing.com – Global gold demand at the start of 2016 rose at its fastest pace ever on inflows from exchange traded funds (ETFs), according to an industry report released on Thursday.
Gold demand increased by 21% year-on-year to 1,290 tons in the first quarter, according to the World Gold Council report.
That was the fastest pace ever for the first three months of the year and the second largest quarter on record.
The Council noted that the increase was driven by “huge inflows” into ETFs, “fueled by concerns around the shifting global economic and financial landscape.”
“Higher prices and industrial action in India pushed global demand for jewelry down (-19%), while total bar and coin demand was marginally higher (+1%),” the market development organization said.
“Central banks remained strong buyers, purchasing 109t in the quarter,” the Council added.
Prices of the yellow metal are up nearly 19% so far this year amid indications the Federal Reserve will take a slow and cautious approach to raising interest rates this year.
However, gold prices slipped on Friday, as the US Dollar Index moved moderately higher ahead of the release of U.S. jobless claims data due later in the day.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery were down 0.25% at $1,272.35, at 9:00AM GMT, or 5:00AM ET.