Chinese gold demand hits record

Gold bars The gold price has risen by more than 20% over the past year

Related Stories

Chinese demand for gold hit a record in the first quarter of 2012, according to the World Gold Council (WGC).

Chinese demand for jewellery and gold as an investment hit 255.2 tonnes in the period, helped by purchases during the Chinese New Year holiday.

The WGC said inflation and restrictions on the property market were likely to boost demand further.

But overall, global demand fell 5% to 1,097.6 tonnes, which the WGC blamed on a sharp rise in gold prices.

The average price of gold was $1,690.57 per ounce in the first quarter, which was 22% higher than the first quarter of 2011.

"Reduced demand in gold from jewellery, technology and official sectors more than offset growth in the gold investment demand," the WGC said in its quarterly report.

India - traditionally one of the world's most important gold markets - saw demand fall. A rise in the import duty on gold and a new excise duty on gold jewellery hit demand.

Jewellers went on strike in reaction to the new tax which prompted the government to abandon the measure.

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

Features

  • Baby being handed overFraught world

    The legal confusion over UK surrogate births


  • Bad resultsBlame game

    The best excuses to use when exam results don't make the grade


  • Police respond to a shooting in Santa MonicaTrigger decision

    What really happens before a police officer fires his gun?


  • Child injured by what activists say were two air strikes in the north-eastern Damascus suburb of Douma (3 August 2014)'No-one cares'

    Hope fades for Syrians one year after chemical attack


  • Lady AlbaGoing Gaga Watch

    Social media's use ahead of the independence referendum


BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.