Gold Demand Jumps 36%

Source:

"Strong demand for gold ETFs, which grew by 414%."

Total gold demand in the second quarter rose by 36% to 1,050 tons, mainly due to strong demand for gold exchange traded funds, which grew by 414%.

Physical gold bar demand climbed 29% to 96.3 tons. Global jewelry demand remained robust but fell just 5% below year-earlier levels.

Gold jewelry demand in India, the largest jewelry market, was little changed from year-earlier levels, down just 2% at 123 tons, though China saw demand for gold jewelry increase by 5%.

Marcus Grubb at the World Gold Council said, "While many investors turned to gold as a 'flight to quality' in response to the uncertain financial environment, this interest has proved resilient even though a sense of optimism has started to return to some sectors of the investment community.

"In addition to the ETF market and physical bar and coin market, the demand for gold through Internet-based investment platforms is likely to provide further sources of investment demand."

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