Asian gold sales sparkle amid recovery<\/p>\n
SINGAPORE (AFP): Gold demand in Asia rose in the first quarter
\nas economies continued to rebound and the lunar new year boosted
\njewelry sales, the World Gold Council said in a report received
\nhere Wednesday.<\/p>\n
Key Southeast Asian markets Thailand, Indonesia, Vietnam,
\nMalaysia and Singapore collectively posted the highest growth in
\nthe region, with demand rising 35 percent from a year ago to 72.4
\ntons.<\/p>\n
Thailand, one of the worst-hit countries during the economic
\ncrisis which erupted in mid-1997, saw a 126-percent rise in
\ndemand to 21.5 tons, the London-based council said in its
\nquarterly report.<\/p>\n
Celebratory spending to usher in the Year of the Dragon was
\nalso credited for the rise in Asian consumption, offsetting falls
\nin Japan and Hong Kong.<\/p>\n
The council tracks consumption of gold jewelry, bars and coins
\nin leading markets representing about 80 percent of total world
\ndemand.<\/p>\n
On a global level, demand was up one percent to 795.2 tons,
\nbut this \"picture of overall stability\" masked sharply different
\ntrends. Apart from Southeast Asia, Turkey, Brazil, Mexico and
\nBritain also showed outstanding gains.<\/p>\n
In India, traditionally the world's largest market for gold,
\ndemand rose only one percent in the first quarter to 197.8 tons
\nas sales were affected by price volatility. But the council said
\nprospects were good.<\/p>\n
\"The economy is robust with the consensus forecast for higher
\nGDP growth in the current fiscal year ending March 2001. Stock
\nmarkets are buoyant while industrial growth, continuing economic
\nreform and the vibrant (computer) software sector augur well for
\nfuture prospects and rising prosperity,\" the report said.<\/p>\n
In Greater China, demand rose four percent to 90.8 tons. In
\nthe mainland, demand was up three percent to 56.5 tons while in
\nTaiwan it was 27.5 percent higher at 27.5 tons, neutralizing a
\nseven percent decline in Hong Kong to 6.8 tons.<\/p>\n
In South Korea, demand rose two percent to 30 tons as the
\neconomy continued its upswing, and jewelry demand has now
\nrecovered to the point where it is almost back to the level seen
\nbefore the economic and currency crisis prompted widespread
\nselling of gold back to the market.<\/p>\n
In Japan, there was a 39 percent decline to 22 tons as
\ninvestors took advantage of the relatively high gold price in yen
\nto switch funds into cash ahead of the financial year-end, the
\ncouncil said.<\/p>\n
Meanwhile, Reuters reported gold was holding well above key
\nsupport levels in Europe on Wednesday but traders expected some
\nselling during the session.<\/p>\n
At 1005 GMT spot bullion was quoted at $274.00\/$274.50
\ncompared with New York's close on Tuesday at $274.10\/$274.60.<\/p>",
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