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Thursday, May 19, 2011

Gold demand seen strong as uncertainty over global growth continues : Central banks

Central banks increased their exposure in Gold, and loaded up 129 tons of gold  in the first quarter of 2011 according to the data from World Gold Council.



The demand was seen quiet stronger, as uncertainty over US economy ,Dollar, ongoing European crisis, global inflationary pressures and continued tensions in the Middle East and North Africa



Demand from China and India has been healthy according to Marcus Grubb, who said central banks continue to add to their reserves.

"Central bank purchases jumped to 129 tons in the quarter, exceeding the combined total of net purchases during the first three quarters of 2010," he said.


"The resilience of gold during recent volatility in the commodities market exemplifies the strength of the global gold market and its unique demand drivers," he added.

"High levels of investment demand across the world, strong demand in India and China, the continued strength of the technology sector together with central bank purchasing demonstrates gold’s diverse demand drivers.

We anticipate continued strong demand during the rest of 2011," Grubb said.

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