High demands from the central banks on gold despite a drop in global demand in the second quarter

World Gold Council said that the demand for the precious metal fell to its lowest level in two years during the second quarter, in conjunction with the decline in demand for dark blue and investment in India and China.

Where the record global demand fell by 7% or 76 tonnes compared with last year fell to 990 metric tons in the three months ended end of June.

This is the lowest level since the first three months of 2010 according to the report, where consumption dropped to about jewelry 72.3 metric tons to 418.3 tons, and the decline for investment 88.3 tons to 302 metric tons.

In spite of this apparent decline but the World Gold Council is still expected demand growth during the full year, but that in turn will depend on the recovery of Indian demand, and the policy of central banks towards the precious metal.

The Chinese demand for gold has registered a decline by 7% during the first half of the year to 144.9 tonnes, which is attributed to the World Gold Council, the lack of clear direction for the movement of prices.

The Director noted in the World Gold Council, “Marcus pod” to the quarter that this is the “passive” first “we have in China a long time, but it is probably linked to issues of economic deeper into China itself, not the gold market itself.

As for the United States has declined purchases of jewelry and investment assets of precious metal 17% to 34.2 tonnes, while the European Union, such as a bright spot and a clear demand for an increase of 11% to 86.4 metric tons.

And the Europeans to buy back the precious metal as a reaction to the deepening crisis of sovereign debt in conjunction with their negative impact on the single currency, which fell by around 5% against the dollar this year.

Increased official purchases of gold from countries more than doubled to reach 157.5 tonnes in the fourth quarter, as announced Kazakhstan, Russia, Turkey, Ukraine to lift up their central banks.

While these purchases amounted to 254 tons of central banks in the first half, up from 200 last year, prompting the World Gold Council to sign a record of them this year than last year, which was the highest since 1964.

Welding and gold above $ 1600 an ounce yesterday as investors are still hoping that the central banks take further steps to support the global economy despite the fact that U.S. data published recently suggest that the central bank may not be forced to intervene at the moment.

And the payment of the absence of clarity on the possible steps of the U.S. Federal Reserve a lot of dealers to refrain from the market, which limit the gains of gold about two percent since the beginning of the year so far.

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