Gold demand in GCC increases 

(MENAFN - The Peninsula) The demand for gold in the six GCC countries as well as Egypt rose 16 percent in the third quarter (Q3) of this year to a staggering 2.6bn over the corresponding period in 2009. The figure in Q3 of 2009 was 2.3bn, according to the World Gold Council.

The demand for gold for investment purposes was worth 273m, up 38 percent over the corresponding period last year.

Gold prices breached all records in the first week of November this year soaring to 1,400 per ounce. Saudi Arabia ranked first by consuming the yellow metal worth 1.09bn in the third quarter, an increase of 13 percent over the corresponding period in 2009 when the figure was 920m.

But the volumes decreased in Q3 of this year as a total of 26.4 tonnes of gold was consumed in Saudi Arabia, down 11 percent over Q3 of 2009, when the quantum was 29.8 tonnes.

The United Arab Emirates (UAE) ranked second as it consumed the precious metal worth 741m, up 11 percent over the corresponding period in 2009 when the consumption was worth 600m.

The demand for gold in other GCC countries recorded 11 percent growth. Gold worth 266m was consumed in Q3 of 2010 over the same period in 2009 when the quantum was worth only 239m.

A total of 6.7 tonnes of gold was consumed during Q3 of 2010 with decrease of 13 percent in the quantity over the same period in the last year when it reached to 7.7 tonnes.

The demand for gold in the Egypt was recorded 17 percent growth where 609 million gold were consumed comparing to last year in which it reached to 519m only.

World Gold Council has expected that demand for gold would increase in the fourth and last quarter of 2010 because the festivals are lying in those moths predicting that gold consumption will be more in 2010 than 2009.