Price of Gold Holds Steady in 2009
February 18, 10
Despite the continued turbulence in financial and commodity markets, 2009 marked the second year in succession that the dollar demand for gold remained above the $100 billion, the World Gold Council (WGC) stated Wednesday.
This demand was possible, according to the WGC's Gold Demand Trends, in the context of the average gold prices being $972.35/oz, 12 percent higher than those in 2008.
Total identifiable gold demand during 2009, in tonnage terms, fell 11 percent to 3385.8 tonnes when compared to 2008. The fourth quarter of 2009 showed a decline in total identifiable demand of 24 percent in tonnage terms. However the price of gold averaged $1099.63 during this period, a 38 percent rise.
“2009 was a year which provided a clear illustration of the diversity inherent in the global gold market. As the year progressed a rebalancing of gold market fundamentals occurred, ensuring that as investment demand came off from the exceptional levels seen in the first quarter, total demand for the year remained robust thanks to a rebound in jewelry and industrial demand,” said WGC CEO Aram Shishmanian.