JOHANNESBURG - Global demand for gold dropped sharply in the first quarter of the year.
This, as the Middle-East war weighed on investor sentiment and jewellery sales.
The World Gold Council reports a 73 percent plunge in gold ETF demand, driven by heavy outflows in March that reversed earlier gains.
Jewellery demand also declined 23 percent year on year, hitting its lowest level in five years, with weaker consumption in China and India.
Gold prices have fallen sharply amid fears that higher inflation could prompt central banks to raise interest rates.
Mining stocks have also been hit hard, with major South African producers AngloGold Ashanti and Gold Fields shedding around 18 percent, while Harmony Gold dropped nearly 30 percent.
Central banks sold more gold to boost liquidity, adding pressure on prices.
The World Gold Council says uncertainty and high bond yields could continue to weigh on demand.