GOLD TRADE SILLIPED 14% TO 842.7 TONNES

In the commodity market old precious metal gold demand declined by 14 per cent to 842.7 tonnes in the country compared to the previous year, mainly due to government policies putting restrictions on imports, according to the latest updates of the World Gold Council (WGC).

The demand grew from 930.0t to 987.5t (+6%).However, the annual total of 3,923.7t was down 4% year-on-year – not surprising as consumer demand in 2014 was never likely to match 2013’s record surge says the WGC.

Jewellery demand was down 10% to 2,152.9t, but 5% above its five-year average. Investment rose 2% to 904.6t,although bar and coin fell from the 2013 record. Central banks bought 477.2t, close to a50-year high. Continued substitution pushed technology to an 11-year low of 389t. Total supply was flat: mine production was a record 3,114.4t while recycling fell to a seven-year low as prices plummeted to lowest in half a decade. According to the WGC,year-on-year comparisons for the last few quarters have been coloured by the singular strength in jewellery, bar and coin demand in 2013. Total supply for 2014 at 4,278.2t was little changed; an increase in mine supply was balanced by a further decline in recycling volumes.