Rising gold prices pushes spending on gold to record high in Q2�06

MARKET sentiment towards gold remained strong in the second quarter of 2006 as total demand for gold rose, in dollar terms, to half-year and quarterly highs despite significant price volatility

Investment demand increased on the back of sustained interest in gold-backed Exchange Traded Funds and related products, as well as supportive economic and geopolitical conditions, while changes in consumer attitudes combined with rising disposable incomes in key markets saw consumers spend more on gold jewellery than ever before � an amount marginally higher than the previous record set in Q4 2003

Investment demand increased on the back of sustained interest in gold-backed Exchange Traded Funds and related products, as well as supportive economic and geopolitical conditions, while changes in consumer attitudes combined with rising disposable incomes in key markets saw consumers spend more on gold jewellery than ever before � an amount marginally higher than the previous record set in Q4 2003

As per James Burton, Chief Executive of the World Gold Council, Price volatility has, as expected, had a detrimental effect on demand in tonnage terms. However it is reassuring to see people are spending more on gold. Sentiment towards gold has remained strong, and today�s figures indicate continued investor interest and a record high in dollar terms for gold jewellery purchasing