Gold demand for the first three months of the year was 17% higher than in the same period in 1996, according to a survey conducted by the World Gold Council.
The record figures were bolstered by demand in developing countries in Asia, Latin America and the Middle East, which totalled 586.8 tonnes, a 22% increase over figures recorded in the first quarter of 1996.
Among developing nations, increased consumption was recorded in: Indonesia, where demand rose 44% to 42 tonnes as a result of a robust jewelry sector; Saudi Arabia, where demand also rose 44%, to 44 tonnes, as a result of greater prosperity stemming from higher oil prices; India, where demand rose 38% to 38 tonnes as a result of strong jewelry sales; and Vietnam, where demand rose 80% to 18 tonnes, owing to higher disposable incomes and currency devaluation.
Overall demand in developed markets, which include the U.S., Japan and Europe, rose 2% to 183.8 tonnes.
Increased jewelry and coin demand pushed demand in the U.S. to 82.9 tonnes, an increase of 9% over figures recorded in the first quarter of 1996. Demand in Japan, however, dropped 8% to 46.5 tonnes, owing in part to weak jewelry sales. Gold demand in Europe rose 3% to 54.5 tonnes. Demand was up 2% and 1%, respectively, in Germany and Italy, and 18% in Britain. French demand fell by 3%.
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