Surging inflows into gold-backed ETFs drove global gold demand to its highest first-quarter total on record this year at 1,290 tonnes, the World Gold Council (WGC) said, despite a near 20 percent drop in jewelry demand.
"It was pleasing to see the strong uptick in physical demand for gold in the first quarter of 2016 ... especially in Western financial centers that have effectively been absent for three years," Old Mutual Gold & Silver Fund manager Ned Naylor-Leyland said.
U.S. gold futures for June delivery settled down 0.3 percent at $1,271.20. Spot silver was down 1.9 percent at $17.07 an ounce, platinum was down 1.75 percent at $1,044.44, and palladium was down 2.23 percent at $591. GFMS analysts at Thomson Reuters said that platinum was likely to have already posted its lows for the year.