Global demand for gold fell last year as buying plunged in two important markets, China and India, the World Gold Council said Thursday.
Total demand in 2014 weighed in at 3,924 tons compared with 4,088 tons the previous year. However, gold demand growth rose into the end of the year—fourth-quarter demand was 988 tons, up 6% from the same period the year before.
“2014 was a year of stabilization…after the record-breaking level of buying seen in 2013,” said Marcus Grubb, managing director of investment strategy at the World Gold Council.
The market is still recovering from the second quarter of 2013, when the largest annual decline in the price of gold in over 30 years sparked a surge in demand—particularly from Indian and Chinese buyers in search of a bargain. As a result, demand in 2013 hit a record high of 4,088 tons, according to the World Gold Council.
At the same time, the strengthening U.S. economy and dollar made the precious metal more expensive for investors holding other currencies, the WGC said.
The two Asian countries are the biggest consumers of gold and together make up roughly half of global demand. But purchases were down sharply last year, falling 14% in India to 843 tons and a whopping 38% to 814 tons in China.
Source: MarketWatch
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