Gold Demand Hits Four Year Low

Gold demand hit a four-year low in the second quarter, despite surging appetite for jewellery, coins and bars, as investors exited bullion funds and central bank buying more than halved, the World Gold Council said.

Lower prices following a selloff in April, when spot gold dropped $200 an ounce in two days in its sharpest slide in 30 years, and another retracement in June sent bar and coin demand to record highs and jewellery buying to its strongest in nearly five years.

That consumer demand rose by more than half to 1,083 tonnes in the three months to end-June from a year earlier, the WGC said.

But a 402.2 tonne outflow from gold-backed exchange-traded funds – popular investment products that issue securities backed by physical gold – and a 93.4 tonne drop in central bank purchases knocked overall demand down 12 percent to a net 856.3 tonnes, its lowest since the second quarter of 2009.

via Reuters

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.