Gold demand declined in the second quarter as investment and jewellery demand softened in India and China, data from the World Gold Council showed Thursday.
Gold demand fell 7 percent from a year ago to 990 tonnes in the second quarter. The decline was partly due to the comparison with exceptional demand last year, and also reflects the challenging global economic climate.
In value terms, gold demand remained relatively stable year on year at $51.2 billion, WGC said in its Gold Demand Trends report.
In India, investment as well as jewellery demand dropped notably in the second quarter. The fluctuations in the exchange rate and the rise in the gold price to records in June were compounded by domestic inflation and concerns over a weak monsoon season.
At the same time, China's investment and jewellery demand slipped 7 percent from a year ago. The lack of sustained upward momentum in the gold price and the slowing of domestic GDP also discouraged consumers from buying gold jewellery.
Meanwhile, demand for bars and coins from Europe retail investors posted a 15 percent year-on-year increase.
Official sector demand in the quarter reached a record high of 157.5 tonnes, more than double the level of the second quarter 2011.
by RTT Staff Writer
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