Global gold demand increases by 11 percent

Global demand for gold has increased by 11% in the first quarter of 2011 with 981.3 tonnes from 881.0 tonnes in the first quarter of 2010, according to the World Gold Council’s Gold Demand Trends (GDT).

In value terms, the demand has translated to USD 43.7billion as compared with USD 31.4billion in the first quarter of 2010, an increase of almost 40%.

This rise is largely due to the widespread rise in demand for bars and coins, supported by an improvement in jewellery demand in key markets.

Moreover, the quarterly average gold price hit a new record of USD 1,386.27/oz (London PM Fix), its eighth consecutive year-on-year increase.

In the first quarter of 2011, investment demand for gold has grown by 26% to 310.5 tonnes from 245.6 tonnes in the first quarter of 2010.

Jewellery demand in the first quarter of 2011 registered a gain of 7% from year earlier levels of 521.3 tonnes to reach 556.9 tonnes.

India and China, the two largest markets for gold jewellery, together accounted for 349.1 tonnes or 63 percent of the total demand, a value of USD16billion.

China?s jewellery demand reached a new quarterly record of 142.9 tonnes (USD 6.4bn) up 21percent from 118.2 tonnes in the first quarter of 2010.