Gold price loses lustre as Asian buyers retreat
Singapore (Aug 13) Global demand for gold has declined in recent months as key Asian markets lose their appetite for jewellery.
“Total demand was 915 tonnes, a fall of 12% compared with the same period last year, due mainly to a decline in demand from consumers in India and China,” the World Gold Council said in a quarterly update.
“However, demand in Europe and the US grew, driven by a mixture of increasingly confident jewellery buyers and strong demand for bars and coins. Looking ahead, there are encouraging signs moving into what are traditionally the busiest quarters for gold buying in India and China.”
However, the price of gold slumped in July, the start of the third quarter, to its lowest level in more than five years, at $1,072.35 (£690) an ounce. It has since rebounded to more than $1,100 an ounce.
Gold prices have also been undercut by a strengthening dollar, which makes commodities priced in the US currency, such as the precious metal, more expensive for investment buyers holding rival currencies, in turn dampening demand.