World gold demand grows 8%, India demand slightly up
Global gold demand hit its highest in more than two years in the third quarter as July's price drop boosted buying of jewellery, coins and bars, the World Gold Council said on Thursday. It said overall demand increased by 8 per cent year-on-year to 1,121 tonne as a number of factors, including ETF outflows, contributed to a price dip which buoyed consumer demand around the world.Total consumer demand – made up of jewellery demand and coin and bar demand – totalled 928 tonne, up 14 per cent. Global investment demand saw a significant rise of 27 per cent to 230 tonne, up from 181 tonne in Q3 2014. This was led by the US, which saw a surge in demand for bar and coin, up 207 per cent to 33 tonne from 11 tonne on the same period last year, with support from China, up 70 per cent to 52 tonne and Europe up 35 per cent to 61 tonne. Global jewellery demand for Q3 2015 was up 6 per cent year-on-year to 632 tonne compared with 594 tonne in Q3 of 2014. In India, demand was up 15 per cent to 211 tonne and China demand grew 4 per cent to 188 tonne. The US and West Asia also saw gains, up 2 per cent to 26 tonne and 8 per cent to 56 tonne, respectively. Central bank demand reached 175 tonne, the 19th consecutive quarter of net purchases. Demand in the technology sector declined 4 per cent to 84 tonne as the sector continued to endure pressure, with the industry choosing to shift towards alternative, cheaper materials in technological applications. Total supply was 1,100 tonne in Q3, up 1 per cent year-on-year. Total mine supply (mine production + net producer hedging) remained relatively flat, up just 3 per cent year-on-year at 848 tonne compared with 814 tonne in the same period last year. Year-on-year quarterly mine production shrank by 1 per cent to 828 tonne in Q3 of 2015 against 836 tonne in Q3 of 2014. Recycling levels were down 6 per cent year-on-year to 252 tonne compared with 268 tonne in Q3 last year.