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Purchases of bullion by Kuwaitis and residents decreased by 10%, amounting to a volume of 100 kilograms in Q1 2024, reaching only one ton compared to 1.1 tons from January to the end of March 2023
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At the level of jewelry and ornaments, purchases of bullion by the citizens and residents remained stable at three tons during Q1 2024, the same volume as their purchases in Q1 2023.
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The World Gold Council noted a 15% annual drop in gold bullion and coin demand in the Middle East, reaching 25.6 tons in Q1 2024 from a higher level in Q1 2023.
Gold purchases by Kuwaiti citizens and residents decreased in the first quarter, with a notable decline in bullion purchases by about 100 kilograms annually. However, their purchases of gold jewelry and ornaments remained at the same level.
In detail, quarterly data from the World Gold Council revealed that purchases of gold by citizens and residents decreased by 2.44% from January to March this year. This included a reduction of 100 kilograms, bringing the total to four tons of jewelry, ornaments, and bullion, compared to the 4.1 tons purchased during the same period in 2023.
At the level of jewelry and ornaments, purchases of bullion by the citizens and residents remained stable at three tons during the first quarter of 2024, the same volume as their purchases in the same period in 2023.
However, purchases of bullion by citizens and residents decreased by 10%, amounting to a volume of 100 kilograms in the first quarter of this year, reaching only one ton compared to 1.1 tons from January to the end of March 2023.
On the same note, the World Gold Council reported a 15% annual decrease in the demand for gold bullion and coins in the Middle East region, totaling 25.6 tons in the first quarter of the current year compared to a significantly higher base level in the first quarter of 2023.
The council added in a report on first-quarter gold demand trends that demand in the region remained relatively stable compared to the previous quarter, with demand remaining high at 35% of its five-year average of 19 tons.
Furthermore, the council noted that investment demand for gold bullion and coins in Turkey, considered separately from the Middle East region, remained very high at 44 tons in the first quarter of the year, marking a 50% increase from the previous quarter despite strong local price increases. However, on an annual basis, demand fell by 12% compared to the record demand recorded in the same quarter the previous year.
The report indicated that in Saudi Arabia, demand for gold rose by five percent on an annual basis in the first quarter of the year, reaching 3.8 tons.
Additionally, on a quarterly basis, demand increased compared to the 3.6 tons in the previous quarter. Throughout the entire last year, demand for gold bullion and metals in the Kingdom surged by 16% to reach 14.1 tons.
In contrast, the United Arab Emirates experienced a 10% decline in demand for bullion and coins on an annual basis, as investors awaited a break or correction in high gold prices. Despite this, the strong motivation to seek a safe haven remained a significant driver for market demand.
