According to the recently released Gold Council report, total identifiable demand over the first three quarters of the year totaled 2,818.50 metric tons, an increase from 2,609.40 during the first three quarters of 2009, and the rise came despite higher prices.
“Gold jewelry demand for full-year 2010 is likely to exceed that of 2009,” Milton Financials believes the Council reported. “We expect India, the most significant market, to continue the recovery in 2010, and anticipate continued strength in China.”
According to the council the most recent available data indicates that jewelry demand is remaining firm in spite of the increasing prices in key Asian nations. The third quarter saw India’s demand leap 36% year on year to 184.5 metric tons. Traditionally fourth quarter demand is higher, driven by holidays such as Diwali and Dhanteras in India, Eid al-Adha in the Middle East and Christmas in the West.
Milton Financials has learned that the Gold Council also highlighted that investment demand continues to rise with factors such as the U.S. Fed’s quantitative easing and the U.S. dollar weakness as well as tensions in the global currency market all contributing to make gold a safer option.
“Support for gold is also expected from higher gold price expectations, as demonstrated by the strength of buying on recent price corrections;
The group is also expecting central banks to continue holding and buying gold going into next year, although they do acknowledge that this will be somewhat tempered by the remaining planned sales of 52 metric tons of International Monetary Fund gold.
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