Price slump shrinks de­mand

The Star Early Edition - - INTERNATIONAL -

GOLDde­mand in China shrank for a third quar­ter as slump­ing prices failed to boost the pur­chases of bars, coins and jew­ellery in the world’s big­gest user and of­fi­cials pressed on with a na­tion­wide anti-graft cam­paign. Buy­ing by Asia’s largest econ­omy tum­bled 37 per­cent to 182.7 tons in the three months to Septem­ber from the same pe­riod in 2013, as last year’s price-driven surge in de­mand was not re­peated, the World Gold Coun­cil said yes­ter­day. An anti-graft drive in China this year hurt de­mand for lux­ury goods in­clud­ing bul­lion, while vo­latil­ity that sank to a fouryear low damped in­ter­est in the metal. Banks in­clud­ing Gold­man Sachs ex­pect prices to ex­tend losses, in part as the buy­ing frenzy that ac­com­pa­nied gold’s drop into a bear mar­ket in April last year has not been sus­tained. – Bloomberg

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