ECONOMIC GLOOM LIFTS GOLD

FEARS over the global economic crisis have sent demand for gold to record highs over the past three months.

The World Gold Council said ‘great uncertainty’ in Japan and Europe was behind a 21pc rise in first-quarter demand. This was driven by investors buying 122pc more than in previous months.

Demand increased to 1,289 tons from 1,074 tons for the same period last year. But the boom had a negative effect on jewellery, making it more expensive and causing demand to tumble 19pc. The WGC report also tracks how much gold is used by dentists as fillings. This fell by 4pc.

The WGC said: ‘US investors in particular were keen to add to their holdings, wanting the security of gold amid economic uncertainty.’

Analysts at Zacks equity research said: ‘2016 has been a particularly good one for gold.’

Demand for gold from investors rose a record 122pc over last three months as they sought a safe haven. But the rising price has caused demand from jewellers and dentists – who use it for fillings – to slump. Indian families own 11pc of the world’s gold...