Gold Jewellery Demand In Middle East Up By 15%

Global demand for gold jewellery recorded a 12 per cent year-on-year increase in Q1 2013, owing to high demand in Asian and Middle Eastern markets, a report finds.

According to the latest World Gold Council Gold Demand Trends report, Middle East and India each recorded a 15 per cent rise in gold jewelry for the first quarter while China saw a 19 per cent increase on the same quarter last year. The demand in US also showed a significant increase of six per cent since 2005.

The increased demand for gold in China and India was driven by a rise in bar and coin sales which was up 22 per cent and 52 per cent up respectively, said the report.

“What these figures show is that even before the events of April, the fundamentals of the gold market remain robust with; growing demand in India and China, central banks consistently adding gold to their reserves and strong buying of investment products such as gold bars and coins,” said Marcus Grubb, managing director, investment at the World Gold Council.

The gold prices hit a low earlier in the April spurring an increase in sales of gold in Middle East that boasts a sizeable Asian population.