Gold loses its shine as appetites for bullion wane after last year’s binge
Global gold demand continued to dip in the last quarter, as appetites waned after last year's binge.
Despite crumbling prices, investors haven't been tempted into the bullion market in recent months. During the three months to the end of September, global demand fell by two per cent from a year earlier to 929.3 tons according to the World Gold Council's Gold Demand Trends report.
Gold jewellery lost its shine for consumers, with demand falling four per cent to 534.2 tons. In China, demand slumped 39 per cent from a year earlier, as gold markets returned to normal after an exceptional 2013. But demand in India soared 60 per cent, buoyed by improved consumer sentiment, the build-up to the Diwali festival – traditionally a time when people buy gold jewellery – and the removal of some import restrictions.
Marcus Grubb, managing director of investment strategy at the World Gold Council said:
This quarter the market continued to find its feet after an exceptional 2013, with Chinacatching its breath and buying in the build up to Diwali driving Indian jewellery purchases.The figures for India and China this quarter reinforce the need to understand the factorswhich underpinned an exceptional Q3 last year. In 2013, India was impacted by import curbsand increased import duties imposed by the previous government, whereas exceptionalbuying in China during the same period shaped buying patterns in 2014.