Gold Demand Edges Up To 219 T In Q2

This surge in demand is in contrast with a two per cent fall in world demand for the yellow metal in the second quarter. Gold demand in the global market slipped 0.6 per cent in the six months ended June 2000.

A growing Indian economy and normal monsoons boosted the demand for gold. The preference for lighter metals for jewellery and for packaged holidays over jewellery, however, restricted the growth.

In urban areas, the downward trend in the stock market also restrained the growth in gold demand to a certain extent. Investors were not ready to off-load their holdings at low prices.

 

Though the demand was stable, the official import level for the first half of 2000 fell 21.7 per cent to 132 tonne. The majority of imports were through the unofficial channel, gold being available cheaper in the market than from banks. The unofficial import was also boosted by the fall in the value of the rupee against the US dollar.