Gold demand up 15% in 3rd quarter

DUBAI. November 24. KAZINFORM Total identifiable gold demand for Q3'09 reached 800.3 tons, or $24.7 billion in dollar terms, up 15 percent from Q2, as gold's long-term store of value and wealth preservation qualities continued to attract investors and consumers; Kazinform refers to the Arab News.

Jewelry and investment demand in non-Western markets rebound from the very low levels seen in Q1, while industrial demand started to recover in response to an improvement in economic conditions. However, the Q3'09 Gold Demand Trends Report, released on Sunday by the World Gold Council (WGC), shows a 34 percent drop on year earlier levels due to an exceptionally strong Q3'08.

The demand soared in response to the deepening global financial crisis and as many non-Western markets responded to a dip in the gold price in that quarter. To address this, WGC compared Q3'09 against the five-year Q3 demand average to 2007, which showed tonnage down just four percent on this basis. Total demand for gold in the Middle East in Q3'09 was down a third when compared to the exceptionally strong quarter recorded in Q3'08, but up six percent on Q2'09 levels; Kazinform cites the Arab News.

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