Gold demand down by 17% in third quarter

Our Commodities Bureau

Mumbai, Nov 19: Gold continued to lose its once lustrous lure both in India — the world’s largest consumer of the yellow metal— and at the global markets.

According to World Gold Council (WGC), India’s overall demand for gold during the third quarter period ended September 2001, was placed at 171.9 per cent, sharply down by 17 per cent from 208 tonnes of last year’s similar period. However, India’s gold demand in January to September this year remained six per cent higher from the previous corresponding period. Even the global gold demand for the third quarter at 755 tonnes was seven per cent below lower compared to previous year’s level. However, WGC said gold demand for jewellery and personal investment responded to global events both before and after September 11.

The increased global uncertainty following the terrorist attacks caused a rise in safe-haven buying of investment gold in a number of countries, particularly in Japan, Korea, Vietnam, Thailand and even in the US with lesser effects in a number of countries.