Wednesday, 25 August 2010

(BN) Gold Demand Jumped 36% in Second Quarter on ETFs, Industry Says


Gold Demand Jumped 36% in Second Quarter on ETFs, Industry Says
2010-08-25 05:00:00.0 GMT

By Pham-Duy Nguyen
    Aug. 25 (Bloomberg) -- Gold demand rose 36 percent in the
second quarter as investors boosted purchases of bullion-backed
funds and sent prices surging during Europe's sovereign-debt
crisis, the producer-funded World Gold Council said.
    Global demand rose to 1,050.3 metric tons from 769.6 tons a
year earlier, the London-based industry group said today in a
report. Investors purchased 291.3 metric tons of gold in
exchange-traded funds, or ETFs, the second-highest quarter on
record, and central banks were net buyers for a fifth straight
    Gold traded in New York averaged $1,198.05 an ounce during
the quarter, up 30 percent from a year earlier, as Europe's
fiscal woes spurred investors to buy gold as a haven. The metal
surged to a record $1,266.50 on June 21 and reached the highest
ever in euros, sterling and Swiss francs.
    "We see a fresh incentive in terms of investment demand
with ongoing uncertainty over debt levels, the lack of
confidence in financial markets and the economic recovery still
weak," said Eily Ong, a research manager at the council in
    Gold prices have rallied 13 percent this year in New York,
heading for the 10th straight annual gain.
    Investment demand, including bars and coins, more than
doubled to 534.4 tons from 245.4 tons, the council said. Jewelry
demand fell 5.1 percent to 408.7 tons, and total demand from
India, the biggest buyers of the metal, was little changed from
a year earlier at 164.5 metric tons.

                       Safe-Haven Buying

    Quarterly investment in gold ETFs surged as European policy
makers pledged $1 trillion to rescue the region's economy. ETFs
attracted 465.1 tons of investment in the first quarter of 2009,
the most ever, after the Federal Reserve slashed the main U.S.
interest rate to between zero and 0.25 percent to stimulate the
economy and Congress passed the Troubled Asset Relief Program to
bail out banks.
    Gold supply rose almost 18 percent to 1,131.6 tons from 963
tons, the council said. Central banks purchased 7.7 metric tons
during the quarter and producers bought back 15 tons.
    Gold futures for December delivery rose $4.90, or 0.4
percent, to close at $1,233.40 an ounce yesterday on the Comex
in New York. Gold for immediate delivery in London rose $4.40,
or 0.4 percent, to $1,230.55 an ounce as of 10 p.m. yesterday.

--Editors: Steve Stroth, Daniel Enoch.

For Related News and Information:
Mining industry NI MNG <GO>
Gold, jewelry TNI GLD JEWELRY <GO>
Gold supply, demand data: GFMS <GO>
Metals, mining information: MINE <GO>

To contact the reporter on this story:
Pham-Duy Nguyen in Seattle at +1-206-521-2741 or

To contact the editor responsible for this story:
Steve Stroth at +1-312-692-3738 or

Commodity Daily

You received this message because you are subscribed to the Google Groups "Commodity Daily" group.
To subscribe visit link 
To unsubscribe from this group, send email to


Note- Members express their own view  & may be or may not be having investment or speculative positions in the commodity, please do not take it as buy or sell call, pl use  own judgments for buying or selling, after having discussion with your certified investment brokers or the person to whom u  have good level of confidence. once sentiment is changed from good to bad no good news work but bad news do work, investors must keep this in mind.

No comments:

Post a Comment