GOLD DEMAND JUMPS TO RECORD HIGH SAYS GOLD GROUP
May 21, 1997
ÿNEW YORK (Reuter) - Gold demand jumped 17 percent to a record 771 metric tons in the first quarter of this year, thanks to soaring consumption in developing countries, the World Gold Council said Wednesday.
ÿ The group, an association of gold producers that monitors 80 percent of global gold market, said demand in developing countries of Asia, the Middle East and Latin America jumped 22 percent to an all time high.
ÿ In the developed countries, demand edged up just 2 percent from the first quarter of 1996.
ÿ "Jewelry demand was the mainstay of this sparkling performance, with a gain of 17 percent to 641 tons," the World Gold Council said in a quarterly survey.
ÿ It said bar and coin demand was up 20 percent to 113 tons after four consecutive quarters of declines.
ÿ "Gold demand has remained strong into the beginning of the second quarter," it said.
ÿ "While it may be too much to expect the market to maintain this record-breaking performance for the remainder of the year, this excellent start provides grounds for optimism about the prospects for 1997 as a whole," the group said.
ÿ In the developing markets, the council reported broad-based growth throughout the Middle East, India, Asia and Latin America.
ÿ Indonesia led with a consumption gain of 45 percent, Saudi Arabia and Turkey each recorded increases of 44 percent and India's consumption went up 38 percent.
ÿ Demand in the United States, the second largest gold consuming market after India, rose 9 percent in the first quarter to 82.9 tons due to strong jewelry and coin purchases.
ÿ In Japan, demand slipped below year-ago levels to 46.5 tons, as shrinking jewelry demand offset the gains from increased investment and dental demand. |
