Despite a strengthening US dollar, and negative sentiment generated by the exchange traded commodites (ETC) sell-off, demand for physical gold remains robust throughout the Orient. The latest statistics published by Macquarie Commodities Research reveal that seasonally adjusted demand for gold jewellery, although down from the second-quarter peak, is markedly higher than a year ago.
This is supported by data from the state-backed China Gold Association, which show that consumer demand in China, which accounts for approximately a quarter of global gold demand, hit a record 386 metric tons in the second quarter. Chinese retail purchases have helped to support gold prices above $1,300 an ounce (£844/oz) since investors pulled out of forward contracts in April.
