• Diversification and desire for safe, liquid assets were main drivers of purchases, says WGC.

BACKGROUND:

• Central banks across the globe are building up gold reserves with the first quarter of 2019 seeing significant buying from such entities.
• According to the latest Gold Demand Trends report by the World Gold Council, central banks bought 145.5 tonnes of gold in the first quarter — a 68% jump from the same period in 2018 and also the strongest start to a year since 2013.
• Meanwhile, the overall global gold demand rose to 1,053.3 tonnes in the first quarter of 2019, up 7% compared to the same period last year.
• On a different note, the first quarter jewellery demand rose 1% compared with the same period last year, at 530.3 tonnes, boosted by India.