RAPAPORT... Global demand for gold jewelry rose 2% year on year to 531.7
tonnes in the second quarter amid an expansion of the Indian market, the
World Gold Council (WGC) reported.
Appetite for gold jewelry in India climbed 12% to 168.6
tonnes in the three months ending June 30, the highest increase in two years. The
quarter contained 37 days considered auspicious in India for getting married, compared with 21
during the same period a year ago. Additionally, a drop in the price of gold in April and May led to a spike in purchases.
The jump in India outweighed a 4% slide in Chinese
demand to 137.8 tonnes. The decrease marked the third consecutive quarter of
year-on-year declines for the key market, the WGC noted. While purchases in April and May were steady,
demand stalled when the price of gold went up in June.
Consumers responded in mixed ways to the price rise, the WGC explained, noting that the fluctuation can directly impact the cost of jewelry at retail, especially in Asia.
“For consumers who saw it as the beginning of an extended rally,
it was a signal to buy before prices advanced further,” the organization said. “For others, it was a
signal to hold off and wait for prices to settle or fall back.”
Demand in the US — the world’s third-largest jewelry market — rose to a 10-year high of 53.4 tonnes in the first half. However, sales slipped in June as concerns over the trade war with China increased.
Global demand for gold in all forms — such as bars and
coins, and for technology, finance and investment — grew 8% to 1,123 tonnes in
the April-to-June period.
Image: Gold bracelets. (Shutterstock)
|
|
|
|
|