RAPAPORT... Global gold jewelry demand jumped in the third quarter as lower prices of the yellow metal attracted buyers.
Demand advanced to 632 tonnes in the three-month period, up 6 percent from a year ago, the World Gold Council (WCG) said in its Gold Demand Trends report released November 12. Consumers in India, China, the U.S. and the Middle East took advantage of the relatively lower prices in July and August.
The drop in gold prices in the early part of the quarter was because of a number of factors, including outflows from exchange traded funds (ETFs), buoying consumer demand around the world, according to the WCG.
“China and India remain the dominant figures in the global gold market, accounting for close to 45 percent of total demand,” Alistair Hewitt, the head of market intelligence at the trade group, said. A particularly noticeable aspect this quarter was that “consumer response to the price dip was a truly global occurrence,” he said.
Demand was especially strong in India, surging 15 percent to 211,000 tonnes, partly as a result of purchases ahead of the festivals such as Diwali. Bars and coins saw the most dramatic growth in the US, with sales at US Mint Eagle hitting their highest since the second quarter of 2010.
Overall gold demand -- jewelry, investment products, technology and central banks -- rose 8 per cent to 1,121 tonnes, according to the WCG. Total supply climbed 1 percent to 1,100 tonnes. Mine production and recycling both fell, but this was more than offset by producer hedging. Supply is likely to remain constrained as the mining industry continues to manage costs, it added.
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