World gold demand in the third quarter increased 12% - WGC

World Gold Council (WGC) said on Wednesday that the key to pick up the Indian market jewelry market and strong growth in gold consumption in China, boosting demand for gold this year.

WGC reported in the third quarter gold demand trends report. The report shows that demand for gold in the third quarter rose 12%. WGC said that jewelry demand in particular will be higher than last year's level.

"This year is the main driving force of Indian and Chinese markets." WGC Eily Ong, research manager, said, "Overall demand in 2010 may exceed 2009."

The global economic outlook and concerns about the stability of the foreign exchange market has been supported by the gold this year, helping push spot gold hit an ounce last week's record high of 1,424.10 dollars. But the standard of gold investment can be recognized, less than 2009.

Ong said the United States earlier this month announced measures such as quantitative easing financial market tensions caused may result in the re-jump gold investment.

Ong said, "If the focus on the second round effects of quantitative easing suspicions to leave, and whether the Asian markets continue to tighten policy or whether the current measures can be successfully contained inflation, so that uncertainty still exists, then the scene or in the reproduction of the second quarter . may be more investors in the allocation of assets of gold, in order to preserve capital. "


** Buying ** India

However, the demand for other forms of heating. Jewelery buying last quarter grew 8% to 529.8 tons, 57% of the total demand. The second quarter of the second quarter of the overall consumption of gold jewelry buying account for only 40%.

Indian gold jewelry buying in the third quarter over the same period increased by nearly 50 tons, or 36%; Greater China gold consumption increased by 16%.

"The largest part of the gold jewelry demand for gold, we continue to see strong feed demand. (This part of the gold prices has been the most sensitive)." WGC's Ong said. "This is good for investors, most confidence in the signal that trend is not gold bubble. "

Dental and electronic equipment industry demand up 13% to 110.2 tons. Ong said the current demand in this area has returned to pre-crisis levels.

Official for the sixth consecutive quarter of net purchases of gold. Shangwang national central banks was the main supplier of gold, but the recent depletion of the European central bank selling, many Asian central banks have been increasing gold reserves.

On the supply side, gold production is relatively flat compared with third quarter production increased slightly by 3% a year earlier to 702 tons. Scrap supply increased by 41% a year earlier to 418 tonnes, slightly lower than in the second quarter of 452 tons. (End )


- Compile Tian Jianhua / Zhang Ruoqi; revision in the crown


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