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The outlook for global gold demand remains robust throughout 2011 against a background of another strong quarter, the geographic and sectoral diversity of demand and strong fundamentals, the World Gold Council said.
According to the Gold Demand Trends report for Q1 2011, demand for gold in the rest of 2011 will be driven by a number of key factors: • Prevailing global socio-economic conditions will continue to drive investment demand for gold. These include: continued uncertainty over the US economy and the dollar, ongoing European sovereign debt concerns, global inflationary pressures and continued tensions in the Middle East and North Africa. • Sustained momentum in Chinese and Indian jewellery demand will underpin growth in the jewellery sector throughout 2011. Strong demand in India during the recent Akshaya Tritiya festival and the beginning of the wedding season, alongside extensive purchasing on dips in the gold price, underlines the strength of the Indian market. • Net purchasing by the official sector is expected to continue in 2011 as central banks turn to gold as a means of diversifying their reserves into an asset with no credit or counterparty risk. More information, click here. |
