Gold demand rises on lower prices: industry

12th November 2015, Comments 0 comments

Global gold demand rose in the third quarter, led by a surge in US buying, as investors took advantage of a slump in prices, the World Gold Council said Thursday.

Total gold demand stood at 1,121 tonnes in the July-September period, an increase of 8.0 percent compared with the third quarter of 2014, the London-based WGC said in its quarterly update.

"China and India remain the dominant figures in the global gold market, accounting for close to 45 percent of total demand," said Alistair Hewitt, head of market intelligence at the industry body.

"But what was particularly noticeable this quarter is that the consumer response to the price dip was a truly global occurrence," he added.

Hewitt said the United States "saw the most dramatic growth" in demand for gold bars and coins in the reporting period.

"Global jewellery demand also picked up (by 6.0 percent), in what is traditionally a quiet time of the year," he added.

The price of gold slumped in July, striking its lowest level in more than five years at $1,072.35 an ounce.

After rebounding in recent weeks, gold on Thursday headed back towards July's lows -- sliding to $1,074.08 an ounce.

Commodity markets in general are being hit by concerns over China's weakening economy and as the strong dollar makes raw materials priced in the US unit more expensive for holders of rival currencies.

But amid a strong dollar, the WGC noted that US demand for gold bars and coins reached the highest level in five years, at 33 tonnes in the third quarter.

"Europe also saw strong levels of demand in the investment sector" owing to concerns surrounding the crises over Greek debt and Ukraine, the Council added.

The WGC added that central banks remained "a significant source of demand" for gold, which is viewed as a haven investment in times of economic unrest.

bcp/cw


© 2015 AFP

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