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