Gold demand rises 15

MUMBAI, August 19: The country8217;s gold demand rose to 201.6 tonnes during the second quarter of the current year, showing a 15 per cent increase over the corresponding of period last year. 8220;Demand was strong in April and May, particularly in May due to precautionary buying ahead of the late budget in June. Bank imports through open general licence OGL, which accounts for the majority of imports, totalled 42.5 and 47.5 tonnes in April and May respectively,8221; a World Gold Council report said here today.

In June, demand was weakened by the onset of the monsoon, reopening of schools, excessive heat and power cuts. Bank imports through OGL fell to 29.0 tonnes. The remaining 37 tonnes of imports during the quarter reflected the declared imports by non-resident Indians NRIs. In the union budget, the government increased the import duties on gold to Rs 250 per 10 grams from Rs 220.

In the world market, gold demand in the second quarter of the current fiscal recovered sharply from the depressed conditions,although the economic and currency crisis in Asia continued to keep demand below normal levels in several countries. Total world demand was 634 tonnes, a 9 per cent fall from the demand in 1997 but more than 50 per cent above the first quarter of the current year.