Gold de­mand weak­ens, hit by China and In­dia: in­dus­try

The China Post - - BUSINESS INDEX & -

Global gold de­mand weak­ened in the sec­ond quar­ter as pur­chases fell in key con­sum­ing na­tions China and In­dia, the World Gold Coun­cil said on Thurs­day.

“To­tal de­mand was 915 tonnes, a fall of 12 per­cent com­pared to the same pe­riod last year, due mainly to a de­cline in de­mand from con­sumers in In­dia and China,” the WGC said in a quar­terly up­date.

“How­ever, de­mand in Europe and the U.S. grew, driven by a mix­ture of in­creas­ingly con­fi­dent jew­elry buy­ers and strong de­mand for bars and coins.

“Look­ing ahead, there are en­cour­ag­ing signs mov­ing into what are tra­di­tion­ally the busiest quar­ters for gold buy­ing in In­dia and China,” it added.

Nev­er­the­less, the price of gold slumped in July, the start of the third quar­ter, strik- ing its low­est level in more than five years at US$1,072.35 an ounce.

It has since re­bounded back above US$1,100 an ounce.

Gold prices have been un­der­cut also by a strength­en­ing U.S. dol­lar, which makes com­modi­ties priced in the U.S. unit such as the pre­cious me­tal more ex­pen­sive for in­vest­ment buy­ers hold­ing ri­val cur­ren­cies, in turn damp­en­ing de­mand.

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