Gold demand falls - Business - Evening Standard
       

Gold demand falls

Demand for gold around the world dropped 9% in the second quarter to 720 tonnes as rising prices and the impact of recession curbed jewellery consumption, the World Gold Council said today.

However, demand among investors jumped 46% to 222 tonnes as a "flight to quality" continued amid the ongoing financial crisis.

Council chief executive Aram Shishmanian said: "Although demand failed to match the exceptional levels seen in previous quarters when the economic and financial crisis was at its peak, it nevertheless remained very robust throughout the quarter.

"Investment demand, in particular, witnessed a strong quarter and we believe this indicates a growing recognition of gold as an important and independent asset class.

"The global economic downturn has certainly had a major impact on the purchasing power of gold consumers."

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