Gold demand is rising rapidly

The interest rates are puny, the stock exchanges are questionable: uncertainty prevails in the markets. More and more investors flee therefore in a supposedly safe investment: They buy gold.

Gold was extremely popular among investors in the first quarter. According to calculations by the World Gold Council, demand for the precious metal has risen by 21 percent year-on-year to 1289.8 tons. This is clear from a report released on Thursday by the London Interest Group of Gold Promoters.

The demand has been higher only since the beginning of the measurements at the turn of the millennium only once in the fourth quarter of 2012, it said. It is also the strongest demand so far recorded in a first quarter.The popularity of gold among investors is due to uncertainties due to fluctuations in the stock markets and low interest rates, especially in the US, said Eugen Weinberg, commodities expert at Commerzbank. In addition, the central banks have continued to buy gold, as has been the case for over five years, albeit a little less than recently.The very strong demand from investors in the first quarter is likely to be difficult to repeat, estimates Weinberg. However, jewelery demand, which had recently eased off, is likely to pick up again in the future. “The gold price should therefore be well supported in the medium term.”The price of gold is currently at a relatively high level. At the beginning of last week, a troy ounce (31.1 grams) cost more than $ 1300, which was more expensive than it had been since January 2015. Since then, the price has fallen slightly again.