Global Q2 gold demand slips 16% to 964 tonnes: WGC

Tags: Gold, WGC, News
Global gold demand in the second quarter of this year declined by 16 per

RELATED ARTICLES

cent to 964 tonnes as consumers and investors held back due to an uncertainty about the direction and momentum in prices of the metal, a WGC report has said.

The overall gold demand during the second quarter of 2013 stood at 1,148 tonnes, the World Gold Council Q2 Demand Trends report said.

In value terms, gold demand in Q2 2014 declined by 24 per cent to $40 billion compared to Q2 2013.

"Looking at an exceptional year last year where we saw record consumer buying and investor sell-offs, this quarter's demand continues to demonstrate a return to long-term trends, illustrating the uniquely balanced nature of the gold market.

"Jewellery consumers continued to digest the exceptional purchases of 2013, and investors also rebalanced, pulling back from the extremes we saw last year," WGC Managing Director of Investment Strategy Marcus Grubb said.

Overall, the market is stabilising following the extraordinary conditions seen in 2013, he said.

The Central bank purchases rose 28 per cent year-on-year to 118 tonnes from 92 tonnes in the corresponding quarter last year.

The report said it was the 14th consecutive quarter in which Central banks were net purchasers of gold, driven by factors like continued diversification away from the US dollar and the ongoing geopolitical tensions in Iraq and Ukraine.

Total bar and coins demand fell by 56 per cent during the second quarter to 275 tonnes from 628 tonnes in the same quarter of the last year.

In Q2 2014, many investors were uncertain about the direction and momentum of the gold price, while traders in price sensitive markets were far less active due to low volatility, it said.

However, the quarter did see an improvement in investor sentiment towards Electronically Traded funds (ETFs) compared to the last year.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Media obsession with his layoff smacks of lack of focus

    Pretty much like his abrupt vanishing act had done 50-odd days ago, Congress vice president Rahul Gandhi’s return on Thursday from a long and myster

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

Varun Dutt

<b>Riskfactor</b>: Oblivious to reality

The hostile media effect, originally deemed the hostile media phenomenon, ...

Zehra Naqvi

Sensual wordplay

The student of literature looks for form and structure. The ...

Bubbles Sabharwal

The bitter cold heart of life

Life has a heart just as we do. Most times ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture