gold industry upbeat despite consumer slump
Last Updated : GMT 20:27:03
Arab Today, arab today
Arab Today, arab today

Gold industry upbeat despite consumer slump

Arab Today, arab today

Arab Today, arab today Gold industry upbeat despite consumer slump

London - AFP

Global economic uncertainty will fuel the current surge in investment demand for gold, even as record prices force a slump in the jewellery market, the World Gold Council (WGC) said Thursday. Global demand for gold was 1,054 tonnes in the three months to September, up 6.0 percent year-on-year -- equal to a record high of $57.7 billion in value terms, the WGC said in a report. The increase was driven by a 33 percent rise in investment demand, with gold offering a safe haven after a US sovereign debt downgrade, plunging global equity markets and the escalating eurozone crisis. The investment surge offset a 10 percent drop in jewellery demand during the quarter as gold prices hit a record $1,920 per ounce in September. "Investors across the globe sought to protect their wealth, diversify their risk and benefit from gold's strong returns," the WGC said in a report. "Given gold's proven risk mitigation properties, it is likely that investors will continue to seek protection from economic uncertainty, which shows no signs of abating," Marcus Grubb, WGC's investment managing director said. "Gold's long-term fundamentals remain strong with a diverse and growing demand base, coupled with constrained supply-side activity," Grubb added. The yellow metal, whose key drivers are investment and jewellery, is widely seen as a safe haven for cash in times of uncertain economic conditions and high inflation. September's record price followed frenzied buying by investors, large funds and central banks around the world. But the high costs and near double-digit inflation saw demand in India -- the world's largest gold consumer and importer -- fall 23 percent to 203.3 tonnes in the quarter to September, from 263.9 tonnes a year earlier. "Consumer confidence has been knocked by high domestic inflation, of near 10 percent," WGC analysts Louise Street and Johan Palmberg, said in the report. "This adversely affected jewellery demand, impacted disposable income levels and overall consumer sentiment." High and volatile prices during India's festive season, which peaks with the Hindu festival of Diwali in October, deterred customers, they added. China, where there is rising demand among an ever richer middle class for luxury goods, dominated growth in the quarter, with a 17 percent increase to 200.7 tonnes. Other Asian economies such as Vietnam, Hong Kong and Taiwan also posted strong growth. The council expects India's demand for gold to increase during its main wedding season, which runs from December to January. India's successful monsoon this year is also likely to yield good crops and boost rural income, while easing high food inflation, the report said. "We look forward to periods of increased price stability which will result in Indian consumers being able to build gold purchases into their household budgets," said Ajay Mitra, WGC's managing director for Middle East and India.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

gold industry upbeat despite consumer slump gold industry upbeat despite consumer slump

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

gold industry upbeat despite consumer slump gold industry upbeat despite consumer slump

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Banyan Tree Phuket Takes Festive Season

GMT 01:34 2017 Friday ,17 November

Banyan Tree Phuket Takes Festive Season
Arab Today, arab today Keep kids busy at Thanksgiving gatherings

GMT 11:14 2017 Friday ,10 November

Keep kids busy at Thanksgiving gatherings
Arab Today, arab today Israel ready to cooperate with Saudi

GMT 06:31 2017 Friday ,17 November

Israel ready to cooperate with Saudi
Arab Today, arab today Top Democrat faces investigation

GMT 09:50 2017 Friday ,17 November

Top Democrat faces investigation
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today Angola oil boss sacked by father's protege

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Baidu speeds up AI progress

GMT 11:46 2017 Friday ,17 November

Baidu speeds up AI progress
Arab Today, arab today Urban, young and active?

GMT 11:01 2017 Thursday ,16 November

Urban, young and active?
Arab Today, arab today Ayten Amer happy for “The Flood” success

GMT 08:06 2017 Wednesday ,15 November

Ayten Amer happy for “The Flood” success
Arab Today, arab today Unloved vultures fight for their survival

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 08:21 2017 Tuesday ,14 November

Nelly Karim focuses on humanitarian roles

GMT 09:23 2017 Wednesday ,15 November

Years melt away as Bening & Bell play unlikely lovers

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 13:40 2017 Monday ,13 November

Pollution spikes in Delhi amid warnings

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs

GMT 10:55 2017 Thursday ,16 November

UN warns fuel running out

GMT 01:04 2017 Wednesday ,15 November

In Morocco, a blue tourist town

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday