Report Confirms High Demand For Gold In First Quarter
June 03, 04
The World Gold Council (WGC) has confirmed in its latest report what the jewelry market has been well aware of since the start of the year - that gold was in high demand in the first three months of this year.
Consumer demand increased by 12 percent and 30 percent, in tonnage and dollar terms, respectively in the first quarter.
The average gold price in the first three months of this year was $408 an ounce – a substantial rise on the average price of $352 in the same period last year.
Demand for gold by institutions was negative since gold was purchased in a rush in January following expectations of further price rises.
The price of gold peaked in January at $425.50 per ounce after which a sell-off of gold investments began.
India, the world's largest consumer of gold, posted a rise in growth of 21 percent in the first quarter, with jewelry accounting for most of the demand.
The WGC believes that financial worries and geopolitical tensions could bring more buyers into the market in the next few months as the long and complex role of gold in the global economy takes a further twist due to the decline in confidence in the dollar.