The Hindu Business Line : Global demand for gold seen up 5 pc

TOTAL global demand for gold in the third quarter (July - September) this year is estimated to have risen by over 5 per cent year-on-year as per the latest quarterly report by Gold Fields Mineral Services.

Jewellery fabrication rose by 5 per cent year-on-year. This was primarily due to very strong gains in India spurred by good monsoons, stable rupee prices in July and August and a robust economy. Total demand in India was at 131.9 tonnes, up 14.1 tonnes from last year's third quarter.

On the global front, the chief feature on the demand side in the third quarter was the jump in the net implied net investment figure to 185 tonnes from 34 tonnes in April - June, equivalent to a jump of more than 150 tonnes quarter- on-quarter.

Despite substantial increase in gold prices, offtake has increased by 5 per cent indicating a strong demand for gold jewellery globally.

Commenting on the Gold Fields Mineral Services quarterly report, Mr Sanjeev Agarwal, Managing Director, Indian Subcontinent, World Gold Council, said: "In India it is very encouraging that jewellery fabrication has gone up by 20 per cent. This is an affirmation that Indian consumers have realised that gold prices are going to remain firm given the geo-political risks and weak dollar".

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