A strong recovery in consumer demand for gold has continued in the second quarter, with numbers up from the previous quarter, said a report.

The latest edition of the quarterly summary of the state of gold worldwide, published by the Gold Demand Trends, World Gold Council showed a 53 per cent increase in the demand for jewellery, bars and coins.

Multiple markets saw increased gold demand appear in parallel with the dropping gold price, as people took the opportunity to invest in physical gold products, it said.
 
India and China were responsible for over 50 per cent of the demand for gold jewellery worldwide, while the demand in India increased by 70 per cent year on year.

In addition to a strong quarter for jewellery, retail investment in gold bars and coins increased by 116 per cent.

Chinese gold investors pushed the demand for bars and coins up by a significant 157 per cent this quarter, said the report.

In the industry overall, the quarter saw a net increase of 105 tonnes invested in gold.

The report also recorded a decrease in gold recycling, suggesting strong consumer confidence in the future value of jewellery, bars and coins, and the overall desirability of gold in all major markets. - TradeArabia News Service