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Chinese Gold Demand Hits Record
BBC NEWS, BUSINESS
May 17, 2012: Chinese demand for gold hit a record in the first quarter of 2012, according to the World Gold Council (WGC). Chinese demand for jewelry and gold as an investment hit 255.2 tons in the period, helped by purchases during the Chinese New Year holiday.
The WGC said inflation and restrictions on the property market were likely to boost demand further. But overall, global demand fell 5% to 1,097.6 tons, which the WGC blamed on a sharp rise in gold prices.
The average price of gold was $1,690.57 per ounce in the first quarter, which was 22% higher than the first quarter of 2011.
"Reduced demand in gold from jewelry, technology and official sectors more than offset growth in the gold investment demand," the WGC said in its quarterly report.
India - traditionally one of the world's most important gold markets - saw demand fall. A rise in the import duty on gold and a new excise duty on gold jewelry hit demand. Jewelers went on strike in reaction to the new tax which prompted the government to abandon the measure.
