Gold demand soars 15% in Q3 to 211 tonnes: WGC

 Demand for gold in India during the third quarter grew 15 per cent to 211 tonnes. During the same period, global demand for gold grew six per cent to 632 tonnes, while that in China grew four per cent to 188 tonnes. Demand for gold in the Middle East and the US grew eight per cent and two per cent, to 56 tonnes and 26 tonnes, respectively.

Interestingly, the investment sector in India, saw its first increase since Q3 of 2014, up six per cent (YoY) to 57 tonnes.

Overall jewellery demand for Q3 2015, was 632 tonnes compared with 594 tonnes in Q3 of 2014, up six per cent (YoY). Consumers in India, China, the US and the Middle East took advantage of lower prices in July and August. This was particularly evident in India, partly as festival purchases were brought forward, resulting in a 15 per cent increase in jewellery demand to 211 tonnes over the period, the World Gold Council (WGC) said.
Global investment demand saw a significant increase this quarter, up 27 per cent to 230 tonnes.

In the US, bar and coin demand reached its highest total in five years, up 207 per cent to 33 tonnes. Europe also saw strong levels of demand in the investment sector as ongoing concerns surrounding the Greek debt crisis and uncertainty in Eastern Europe, the result of a number of factors including continuing tensions between Russia and Ukraine, and saw demand climb by 35 per cent to 61 tonnes. In China, investment demand grew by 70 per cent to 52 tonnes, as demand was initially stimulated by the gold price weakness in July, which was further fuelled by the mid-August foreign exchange reform, WGC said.

Central banks remained a significant source of demand, and were net buyers for the 19th consecutive quarter. Purchases by official sector institutions reached 175 tonnes, a level almost matching the record highs in Q3 of 2014, as the net widened to include new reports from countries such as China and the UAE, WGC said.

Power of Yellow Metal

Jewellery demand for Q3 was 632 tonnes against 594 tonnes
China and India contribute 45% of total demand
Gold bars, coins gained momentum globally