Physical Gold Demand Surges 53% In Q2, Total Supply Down 6% – Price Falls 35%
Gold Core
GoldSeek.com
Thursday, 15 August 2013
Gold is ticking higher today after it hit a three week high yesterday. Silver climbed another 1%, its highest price in a month as the largest silver backed ETF, iShares Silver Trust, reached a four month high. Platinum hit its highest price in over two months and palladium also climbed.
Gold prices in India have risen this week, extending gains past their highest level in four months, due to the import duty hike and rupee weakness. India’s consumption of gold rose to 310 tonnes in the second quarter ended June, highest in the last 10 years, despite government curbs to restrict imports to rein in the burgeoning current account deficit. Contrary to expectations that gold imports may fall, India’s appetite for bullion may pick-up later in the year due to seasonal demand. Analysts say this could increase further illegal gold supply into India.
The SPDR Gold ETF saw another day of inflows yesterday, this coupled with last Friday’s inflows hitting their most since June 10th added bullish sentiment as did the increased geopolitical risk in Egypt which appears headed for a civil war with implications for the already troubled region.
Gold bullion gained as data showed that global physical demand remains very robust.
The latest World Gold Council Gold Demand Trends report, which covers the period April-June 2013, confirms again how recent falls in the gold price were due to speculators selling paper gold rather than a decline in actual demand for physical gold.
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