(MENAFN- Khaleej Times) The UAE witnessed a 40 per cent surge in consumer demand for gold during the second quarter of the year over the same period last year, according to the latest data issued by the World Gold Council on Thursday.
Total gold consumer demand in the country jumped to 22.8 tonnes for the June quarter, compared to the 16.3 tonnes demand in the same quarter last year. -
In value terms, the total gold demand in the country increased to $1.04 billion during the second quarter of 2013, compared to $843 million, showing 23 per cent increase.
"Demand in the UAE was heavily buttressed by the substantial ex-pat Indian community, which favours 22-carat items," the Council in the quarterly report.
The Middle East region recorded 37 per cent increase in gold demand for June quarter that increased to 67.4 tonnes compared to 55.7 tonnes during the same period last year. Value of the gold demand in the region increased to $3.06 billion, compared to $2.54 billion last year, reflecting 21 per cent increase.
India, China dominate globally
India and China dominated the global gold market in terms of consumer demand during the second quarter of the year over same quarter last year. Global consumer demand for gold totalled 1,083 tonnes in the quarter, showing a year-on-year increase of 53 per cent. Globally, jewellery demand was up 37 per cent in the quarter to 576 tonnes from 421 tonnes in the same quarter last year, reaching its highest level since third quarter of 2008.
The Council report highlighted that how recent falls in the gold price have generated significant increases in demand, most notably from consumers in China and India - by far the biggest markets for gold - compared with the same time last year. In China, demand was up 54 per cent compared to a year ago; while in India demand increased by 51 per cent. There were also significant increases in demand for gold jewellery in other parts of the world.
Marcus Grubb, managing director for Investment at the World Gold Council said: "This quarter again demonstrates the unique diversity of global gold demand, as the self-balancing nature of the market apparent in the previous quarter was even more clearly in evidence. Across the decades, different sectors in the gold market have risen in prominence at different points in the global economic cycle and the current shifts are just part of the normal ebb and flow of what is an extremely liquid market."
For the tenth consecutive quarter, central banks were net buyers of gold, purchasing 71 tonnes, which reinforces the trend that began in the first quarter of 2011. Demand in the technology sector was stable once again, totalling 104 tonnes, a rise of one per cent on last year.
Meanwhile gold held in gold-backed ETFs, which in 2012 accounted for just 6 per cent of the world's gold demand, fell by just over 400 tonnes, driven by hedge funds and other speculative investors continuing to exit their positions.
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