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India, China accounted for 55% of global gold demand in Jun qtr

Last Updated: Wednesday, August 31, 2011 - 21:56

New Delhi: India and China accounted for more than half of overall global demand for gold jewellery in three months ended June 2011, says a report.
According to World Gold Council's (WGC) Gold Demand Trends report for the 2011 second quarter, the two nations also made up 52 percent of global investments in gold bars and coins.
Noting that year-on-year growth gold demand in the second quarter was broad-based, WGC said that India and China were the major contributors to growth in both jewellery and investment demand.
Second quarter global gold demand stood at 919.8 tonnes worth about USD 44.5 billion, the second highest quarterly value on record, it said.
"These two markets accounted for 52 percent of global bar and coin investment and 55 percent of global jewellery demand.
"Year-on-year volume growth in total consumer demand was 38 percent in India and 25 percent in China, compared with a global growth rate of 7 percent," WGC said.
As per the report, prospects for both Indian and Chinese markets "for the remainder of the year as optimistic".
In volume terms, the demand was 17 percent in the 2011 second quarter as compared to the year-ago period. While in terms of value, the demand rose by five percent during the same time.
Gold prices rose during May and most of June, amid concerns about Greek default time and fall in global equity prices.
"After setting a new record at USD 1,552.50/oz, gold retreated back towards USD 1,500/oz, providing a final boost to demand at the close of the quarter," the report added.


First Published: Wednesday, August 31, 2011 - 21:56
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