Demand for gold in the second quarter fell by 16%

Demand for gold in the second quarter fell by 16%

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Demand for gold in the second quarter fell by 16%

Global demand for gold fell sharply in the second quarter, as prices have stabilized as a result of exceptional circumstances, during the second quarter of last year, according to the latest report of the World Gold Council (WGC).

Demand for gold bars was 964 tonnes in the second quarter, which is 16% lower than a year ago, when the figure was 1,148.3 tons.

However, this drop in demand is not surprising, taking into account differences in market conditions in these periods.

“The sharp decline in the price of gold by 25% for the period from April to June 2013, led to increase in demand, which, according to analysts, there is a” once in a generation. “

Falling prices in the second quarter of 2013 was due to capital outflows from exchange-traded funds, as investors feared that the beginning of “tightening” the Fed will lower inflationary expectations.

On the contrary, the price of gold remained in a relatively narrow horizontal range in the second quarter of 2014, holding the volatility is much lower than average.

This decline was due mainly to the decline in investment jewelry, gold bars and coins. Demand for jewelry, which traditionally accounted for half of global gold demand in the second quarter of 2014 dropped by a third, while the demand for gold coins and bars has become more than half lower than it was in 2013.

The demand for goldĀ was observed in Asia and the Middle East, while most Western markets, with the exception of Italy, showed growth compared to last year, in particular in the USA and the UK.

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