Demand during the comparative period last year was 174.1 tonnes. Demand in the third quarter is the second-highest quarterly demand ever recorded after the exceptionally high demand reported in Q1 1998. The demand peaked during the period due to easing of import restrictions at the end of 1997.

However, the year-to-date offtake of gold is 658.9 tonnes, 4 per cent higher than the corresponding period of 1998. The report has cautioned that the sharp increase in gold prices registered at the end of the quarter may well continue and may have an adverse impact on demand in the final quarter.