Nov 20, 2009
Gold demand climbs quarter-on-quarter
Nov 20, 2009
LONDON, Nov 19, 2009 (AFP) - Gold demand rose 10 percent in the third quarter from the previous three months in tonnage terms, as the record-breaking metal won support from its safe-haven status, the World Gold Council said.
Photo : Jung Yeon-Je/AFP
However, demand slumped 34 percent to 800.3 metric tonnes in the three months to the end of September, compared with the same period of 2008, due to very strong demand one year ago, the WGC said in a report published Thursday 19 November.
In dollar terms, the value of global gold consumption advanced almost 13 percent to 24.7 billion dollars in the third quarter from the second. But that was a hefty 27 percent lower than the same period last year.
The London-based WGC published its quarterly report one day after gold hit a record 1,152.85 dollars an ounce, buoyed by the weak US currency and recent central bank purchases of the precious metal.
"Total identifiable gold demand for the third quarter 2009 reached 800.3 tonnes, or 24.7 billion dollars... as gold's long-term store of value and wealth preservation qualities continued to attract investors and consumers," the WGC said in the report.
The WGC added that there was "a 34-percent drop on year-earlier levels due to an exceptionally strong third quarter of 2008, which saw soaring demand in response to the deepening global financial crisis and as many non-western markets responded to a dip in the gold price in that quarter."
In recent weeks, gold has blazed a record-breaking trail on the back of economic recovery hopes and the weak greenback, which makes it cheaper for buyers using stronger currencies and tends to boost demand.
"This quarter's demand trends demonstrate the diverse and robust nature of the gold market which underpins the gold price," added Aram Shishmanian, Chief Executive Officer of the World Gold Council.
"Early signs of economic recovery and improving consumer confidence have seen jewellery and industrial demand rise relative to last quarter, and the profit taking witnessed earlier in the year has markedly decreased.
He added: "The outlook for investment is positive overall with absolute levels of demand likely to remain well supported by continued economic and currency uncertainty, inflation concerns and the search for diversification.
"In the official sector, we expect to see a continuing trend of central banks diversifying their dollar exposure in favour of the proven store of value represented by gold."
Copyright © 2023 AFP. All rights reserved. All information displayed in this section (dispatches, photographs, logos) are protected by intellectual property rights owned by Agence France-Presse. As a consequence you may not copy, reproduce, modify, transmit, publish, display or in any way commercially exploit any of the contents of this section without the prior written consent of Agence France-Presses.