Global gold demand drops by 11 percent

MUMBAI - Agence France-Presse

A Syrian vendor waits for customers at his jewelry store in Damascus. AFP photo

Global demand for gold fell 11 percent in the third quarter on an annual basis, as buying in key market China dipped because of its slowing economy, the World Gold Council said yesterday.

Worldwide demand fell year-on-year in the July-September period to 1,084.6 tons worth an estimated $57.6 billion as prices on average were 3.0 percent lower than the record levels seen a year earlier, the WGC’s latest report said.

Reduced demand for gold from jewelry, investments and technology sectors offset a rise in buying from global central banks. Buying in China fell 8 percent year-on-year to 176.8 tons due to the “slowing of its economy which had a negative impact on consumer sentiment”, the report said. But Marcus Grubb, managing director in investment at the WGC, said that gold would continue to be bought to preserve capital, amid “a backdrop of continued global economic uncertainty.” India, the world’s largest consumer and importer of gold, saw a slight improvement in demand in the quarter, the council said, with consumption of 223.1 tons, up 9.0 percent from a year earlier. India and China, which have both been battling high inflation, together account for about half of the world’s gold demand, and China is forecast to overtake India as the market leader by the end of this year.