Gold Recovers as WGC Reported Strong Demand, China Overtook India

Gold is lifted mildly by report from World Gold Council that showed increased demand in Q1 of 2011. Overall demand grew by 26%, up from 245.6mt in Q1 2010 to 210.5mt in the last quarter. Main drive of growth came from bar and coin demand, which jumped 52% yoy to 366.4t. In terms of value there's nearly doubled from $8.6b to $16.3b. China overtook India as the largest market for gold coins and bars. Investment demand in China rose to 90.9 mt in Q1, more than doubled of last year's 40.7mt. The figure outpaced india's modest rise to 85.6mt. China itself now accounts fro 25% of global gold investment demand, compared to India's 23%. WGC MD for Far East Albert Cheng said that in March 2010, the organization predicted that gold demand in China would double by 2020, but now, such doubling may be achieved sooner on inflationary expectations as well as rising income level in the country.

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Gold Recovers as WGC Reported Strong Demand, China Overtook India