Positive investor sentiment and greater confidence in the timing of jewellery purchases saw gold reach new all-time highs in early April, the World Gold Council said on Friday.
Against a backdrop of uncertain global markets, and a rising price, gold remained one of the least volatile commodities in the wider commodities mix, and ultimately breached the $1,500/oz mark earlier this month, it said in a report.
The gold price rose by 2.4 percent during Q1 to $1,439.00/oz by March 31, a more modest rise relative to average gains of 6.2 percent per quarter over the past two years.
Central banks continued to be net buyers of gold in Q1 2011 with emerging market countries, including Russia and Bolivia, being among the key net buyers.
Juan Carlos Artigas, investment research manager at the World Gold Council, said: “Gold’s performance in Q1 2011 was characterised by continued concerns over the global economy, which have led investors to become increasingly aware of gold’s qualities as a preserver of wealth.
“Our intelligence indicates that purchasing confidence in key jewellery markets, notably India and China, increased during the period, as price volatility declined and the dollar weakened against local currencies, resulting in a more measured price increase.”
A key trend noted in the Gold Investment Digest was the growing concern over global inflation.
The report said that while inflation in countries such as India and China appeared to have subsided, it still remained high.
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