WASHINGTON (dpa-AFX) - The continued upsurge in gold prices in the recent months marginally impacted the demand for the yellow metal in the first quarter of 2012.
According to a release from the World Gold Council, or WGC, demand for gold eased 5 percent to 1,097.60 tons in the first quarter of 2012 on an year-over-year basis. Reduced demand from the jewelry, technology and official sectors more than offset growth in gold investment demand, the council pointed out.
While demand in the jewelry sector was down 6 percent to 519.80 tons, demand in US dollar terms grew by 14 percent to a record $28.30 billion in the first quarter of 2012. Demand in India dived to 207.60 tons as consumption was hampered by a then proposed excise duty on gold jewelry. However, gold demand in China rose to a record 255.20 tons, boosted by local New Year holidays.
Meanwhile, supplies from miners, recycling activity increased 5 percent to 1,070.30 tons. First quarter mine production was up 20.60 tons or 3 percent to 673.80 tons, the WGC said.
The price of gold fell to near 10-month low amid lingering concerns over the political developments in Greece, which escalated worries over the financial situation in the euro zone. Gold for June delivery, the most actively traded contract are changing hands at around $1,550, sharply lower from a record high of near $1,900 registered in the month of August 2011.
Copyright RTT News/dpa-AFX