Gold demand rises 6% — WGC

MUMBAI, AUG 18: Buoyed by a bumper agricultural production and increase in rural income, India's gold demand registered a six per cent in...

MUMBAI, AUG 18: Buoyed by a bumper agricultural production and increase in rural income, India’s gold demand registered a six per cent increase to 218.4 tonne in April-June compared to the same period last year, World Gold Council (WGC) said today.

However, the total demand for gold during the first six months of 1999 was down 10 per cent to 414.4 tonnes as against 459.2 tonnes in the same period last year, WGC said in its quarterly publication gold demand trends.’ "Good performance of the agricultural sector had a very positive impact on incomes in the rural areas and contributed to the rise in demand," the report said.The fall in the rate of inflation reduced the prices of basic household goods, a major factor that had diverted spending away from gold in the previous year, WGC said.

The global demand for the yellow metal increased 16 per cent to 810 tonnes during the second quarter of 1999 compared to the year-ago period, a record for the second quarter and a new all time high for any three-monthperiod, the council said.

WGC attributed the strong demand pick-up to a 32 per cent increase in investment over the same period last year and to a 13 per cent increase in jewellery demand worldwide. Broader appreciation worldwide for the role of gold as a monetary asset brought strong gains in the demand for the yellow metal as an investment in countries like the US, Japan, Brazil, Indonesia, Thailand and Vietnam, WGC said. "The increased demand witnessed in some Asian countries badly hit by the recent economic and currency crisis only validate people’s faith in gold," WGC financial institution manager Derrick Machado said in a statement.

He said the worldwide increase in demand for gold as an investment reaffirmed the fact that gold was still valued as an asset that assured safety and security in adverse times. Machado claimed that the actual gold imports into India during the month of June was only 57 tonnes and not 80 tonnes as was reported in certain sections of the press. The council, however, madeno reference to the impact of sale of 27.5 tonnes of gold by BoE last month on worldwide demand.

Sharp recovery in gold prices

MUMBAI: Gold prices displayed sharp rise on the bullion market here today due to steep rise in its prices in the international markets. Silver also recovered smartly in line with higher overseas advices. The fresh rise in the yellow metal’s prices in the global market was a result of the report that goldminers in South Africa had went on strike, dealers said.

Standard gold showed a handsome gain of Rs 25 at Rs 4,145 as against the last close of Rs 4,120. 22-carat gold was nominally quoted higher at Rs 3,835 from yesterday’s close of Rs 3,810 and ten-tola gold bar (.999 purity) hardened by Rs 200 to Rs 48,400 from Rs 48,200.