Global gold demand increased by 15 per cent to 1,050.20 tonnes in the second quarter ended June 30, 2016 on account of 141 per cent rise in investment demand, according to the latest report by the World Gold Council.
Global gold demand increased by 15 per cent to 1,050.20 tonnes in the second quarter ended June 30, 2016 on account of 141 per cent rise in investment demand, according to the latest report by the World Gold Council. Global demand stood at 910.40 tonnes in the same quarter last year. During April-June period, global investment demand of gold jumped to 448.40 tonnes against 186.10 tonne in the same period last year.
According to the report, this is for the first time that investment demand for gold has been the biggest component in global gold demand for the second consecutive quarter. The rise in investment demand can be attributable to demand from Western investors including retail to institutional investors and for bars, coins and electronic traded funds.
While jewellery demand in India fell by 20 per cent year-on-year to 97.90 tonnes during April-June period against 122.10 tonnes in the same quarter last year. On the other hand, demand of jewellery in Pakistan increased by 21 per cent year-on-year to 6.50 tonnes from 5.40 tonnes a year ago. Overall, India demanded 131 tonnes of gold in Q2’2016, down 18 per cent against 159.80 tonnes in Q2′ 2015.
Jewellery demand in China and Hong Kong fell by 15 per cent and 17 per cent for the quarter ended June 2016. United States witnessed 1 per cent rise in jewellery demand to 25.90 tonnes in April-June 2016 against 25.6 tonnes in the same quarter last year. Overall, world demand for jewellery fell by 14 per cent year-on-year to 444.10 tonnes from 513.70 tonnes in the same period.
World Gold Council in a report said, “Jewellery consumers have faced a tough environment in 2016 so far. Steep price rises have done little to attract demand in the more price sensitive markets.”
Exchange traded funds demanded 236.80 tonnes of gold during the April-June period.
China demand for the yellow metal slid by 14 per cent year-on-year to 183.70 tonnes in April-June 2016 against 214.10 tonnes in the same period last year. India is the second largest gold consumer in the world after China.