FXStreet (Mumbai) – The World Gold Council’s Q2 2015 Gold Demand Trends report released on Thursday shows demand for the yellow metal slipped by 11% in comparison to the same period last year, with the decrease primarily due to Indian and Chinese consumers losing appetite for the metal, despite lower prices.
On the contrary, demand for the yellow metal from the Western markets such as from Europe and the US increased with an upsurge in demand for bars, coins and jewellery.
Key highlights:
“Global investment demand slipped 11%. India led the fall, dropping 30%, as uncertain price expectations and a buoyant stock market weighed heavily on demand. Increased Chinese bar and coin demand of 6% helped dampen the decrease.”
“Falls in consumer spending in Asia placed pressure on overall jewellery demand, pushing it down 14%. In China, slowing growth led to a 5% slip.”
“In Europe, gold investment rose 19% on fears of a potential Greek exit from the euro zone. The US also saw strong demand with an upsurge of 7%. Bullion coin sales through the US Mint hit a 17-month high in June.”
“US jewellery demand, up for the sixth consecutive quarter, remained flat at 2%. European demand was also up, with Germany seeing a 7% surge and the UK and Spain each increasing by 6%.”
“Gold hoards at central banks in countries such as Russia and Kazakhstan increased. Though year-on-year a 13% fall was registered globally, purchases increased by 11% in comparison to the first quarter of this year. Central banks were net gold purchasers for the 18th consecutive quarter.”
“The total precious metal supply was down 5% as a 3% increase in mine production in Q2 2015 was negated by a 8% decline in recycling levels.”
“H2 2015 indicates mine production will slow as the gold mining industry continues to optimize operations in the face of challenging markets.”
(Market News Provided by FXstreet)