New Delhi, Nov 13 (IANS): In India, gold jewellery demand witnessed a 60 percent year-on-year increase to 183 tonnes in the third quarter (Q3) of 2014, according to the latest Gold Demand Trends report from the World Gold Council covering the period July to September 2014.
"In India, jewellery demand saw a 60 percent year-on-year increase to 183 tonnes in Q3 2014, the second highest Q3 on record for the country," the report stated.
"While the increase is partly reflective of the weakness in Q3 in India last year - when the government introduced import curbs and raised import duties - it also demonstrates the resilience of the country's appetite for gold jewellery," it said.
"Improved consumer confidence in both the domestic economy and the new government added to the positive sentiment, with strong levels of purchasing being seen in the build up to Diwali," the report added.
However, in China jewellery demand for Q3 2014 was down 39 percent year on year to 147 tonnes.
"Jewellery remains the biggest component of gold demand, representing more than half of all demand at 534 tonnes, which is 4 percent lower year-on-year. Jewellery demand was driven by India."
"UK and US demand was also strong. Chinese jewellery demand fell 39 percent to 147 tonne as the jewellery market caught its breath after an exceptional year for demand last year," the report said.
Global demand for gold was down just 2 percent year-on-year to 929 tonnes.
In the US, jewellery demand grew 4 percent year-on-year to 34 tonne, the highest Q3 since 2009. In Britain, jewellery demand had its fifth consecutive quarter of year-on-year growth.
"This quarter the market continued to find its feet after an exceptional 2013, with China catching its breath and buying in the build up to Diwali driving Indian jewellery purchases. The figures for India and China this quarter reinforce the need to understand the factors which underpinned an exceptional Q3 last year," according to the report.
"In 2013, India was impacted by import curbs and increased import duties imposed by the previous government, whereas exceptional buying in China during the same period shaped buying patterns in 2014," Marcus Grubb, managing director of investment strategy at the World Gold Council, said.
Globally investment demand, a combination of bars and coins and exchange-traded funds (ETF), was up 6 percent to 204 tonne. However, investment in bars and coins was down 21 percent to 246 tonne.
"This reflects an adjustment towards more normal levels of demand after a surge of unprecedented consumer demand took place last year. ETF outflows stood at 84 tonne for the year to date compared to 699 tonne in the same period last year. Third quarter demand for bars and coins was very close to the 10-year quarterly average of 240.6 tonne," the report added.