Aggregate gold demands in the markets monitored by the Geneva-based World Gold Council reached 655 tons in the third quarter of 1996, just 2% below the record high of 668 tonnes for the corresponding period last year.
Demand in the developing countries of Asia, the Middle East and Latin America set a new record for the period. In the developed markets, jewelry demand was 1% higher, but the return to more normal levels of investment demand, following a high performance last year, meant that total demand was 7% lower.
Gold demand during the first three quarters of 1996 continued to consolidate close to last year’s record high. Total demand in markets monitored by the World Gold Council reached 1,942 tons, just 3% below the level reported for the first three months of 1995. Steady growth in the developing markets was offset by a return to more normal levels of investment in the developed markets. Gold demand remains robust at current price levels, and, with income continuing to grow in most key consuming areas, the outlook for 1996 is good.
Demand-related highlights of the third quarter include:
* Strong performances from Indonesia (up 39%), South Korea (up 8%), Malaysia (up 15%), and Vietnam (up 67%) served to offset decreases in China (down 6%) and Taiwan (down 27%). As a result, Asian demand was unchanged from the same period of 1995.
* Demand in Turkey rose 15%, whereas in the Persian Gulf and India, demand slipped 10% and 4%.
* In Latin America, continued recovery brought a 13% gain in demand.
* In Europe, demand rose 1% to the highest level for any third quarter in the last four years.
* In the U.S., buoyant jewelry sales lifted total demand 4% to a new third quarter record.
* In Japan, total demand fell 29% as investment returned to relatively normal levels.
The most significant developments in demand for the first nine months of 1996, compared with the same period of 1995, were:
* In Turkey, the recovery that started in late 1994 has continued through this year, driving demand up 14% for the first three quarters.
* In Indonesia, demand reached a new high for the third quarter, resulting in a year-to-date increase of 10%.
* Both investment and jewelry demand in Japan fell 38% from the high levels experienced in 1995.
— From a report issued by The World Gold Council.
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