The World Gold Council (WGC) has released Gold Demand Trends for the second quarter of year 2010. It notes 36 percent increase in volume of gold demand to 1,050 tonnes, while value in US dollar terms rose 77 percent to $40.4 billion.
The period saw investment demand as the strongest category of gold demand, surging 118 percent to 534.4 tonnes, from 245.4 tonnes in the same quarter last year. Within investment demand, the ETF segment was most popular increasing 414 percent to 291.3 tonnes, the second highest quarter on record. The demand for physical gold bar (which largely covers the non-western markets) increased 29 percent to 96.3 tonnes from the same quarter last year.
Gold jewellery was in good demand in the second quarter of 2010, with a minor 5 percent drop (y-o-y) in consumption to 408.7 tonnes, attributed to the rise in prices. India being the largest jewellery market, accounted a miniscule 2 percent drop in gold jewellery demand to 123.0 tonnes. Demand for gold jewellery in China rose 5 percent to 75.4 tonnes.
The WGC predicts demand for gold to remain robust during 2010. India and China are predicted to reflect increasing demand for gold jewellery. Also, investment will highlight global gold demand, driven by continuing uncertainty over public debt and economic recovery.