Gold demand down in Vietnam. Illustrative photo
The decline was attributed to domestic supply shortages and high premiums.
In Southeast Asia, demand for gold bars among investors in Singapore remained strong, rising 35% year-on-year to 2.5 tonnes – the highest level since 2010.
Investment demand in Indonesia, Malaysia, and Thailand also saw double-digit growth compared to the same period last year.
Across ASEAN, however, demand for gold jewellery declined due to record-high prices. In Singapore alone, it dropped by 20% to 1.7 tonnes.
Shaokai Fan, Head of Asia-Pacific (ex-China) and Global Head of Central Banks at the World Gold Council, noted that global jewellery demand hit its lowest point since the COVID-19 pandemic, which is understandable given that gold prices broke record highs 20 times during the first quarter.
He also said central banks continued to be net buyers of gold for the 16th consecutive year, adding a total of 243.7 tonnes in the first quarter of this year.
The purchases were driven by goals such as portfolio diversification, risk management, inflation hedging, and protection against geopolitical and market volatility. However, total gold bought by central banks fell 21% from the same period last year.
Fan added that amid ongoing geopolitical tensions and global market uncertainty, gold remains a safe-haven asset. The WGC forecasts that short-term stagflation risks, medium-term recession concerns, a stronger stock-bond correlation, rising US fiscal deficits, and sustained geopolitical instability will continue to stimulate gold investment demand.
