Demand for gold rose in 2016 to a three-year high, aided by keen investment appetite for the precious metal, the World Gold Council said Friday in a report.
Total demand for gold -- whose twin drivers are jewellery and investment buying -- advanced two percent to 4,309 tonnes compared with 2015, London-based industry body WGC said in a report.
However, in the final three months of 2016, overall demand retreated 11 percent to 994.1 tonnes from a year earlier.
Investment demand rose in the first, second and third quarters of 2016 by inflows into exchange-traded funds (ETF) -- which allow investment without trading on the futures market. But this hit reverse in the fourth quarter.
Jewellery demand meanwhile sank over the year on the back of higher gold prices.
By the end of September 2016, prices had jumped 25 percent as dealers flocked to the safe haven and fretted over global economic worries including Brexit and US election uncertainty.
But the market ended 2016 with an increase of just eight percent, relinquishing some of its gains after President Donald Trump's conciliatory acceptance speech and the US Federal Reserve's December interest rate hike.
"The turning point was the US election. Global market reactions to the election outcome surprised most analysts," the WGC noted in its report.
"Not only did the result remove a significant element of uncertainty among investors, but Trump's growth-boosting rhetoric increased US interest rate expectations and pushed the US dollar higher.
"This triggered profit-taking among some investors, and a sharp correction (lower) in the gold price."
GMT 13:48 2017 Tuesday ,19 September
Rhino horn smugglers shift to jewellery: reportGMT 19:48 2017 Friday ,08 September
Harper's Bazaar and Town & Country name junior fashion and jewellery editorGMT 21:47 2017 Wednesday ,30 August
Karl Lagerfeld and Vans reveal collaborationGMT 18:43 2017 Wednesday ,23 August
Jon Richard appoints Digital Marketing AssistantGMT 12:51 2017 Tuesday ,01 August
SACET launches & appoints Push PRGMT 11:31 2017 Wednesday ,26 April
CARAT* London appoints b. the communications agencyGMT 18:19 2017 Friday ,21 April
Newbridge Silverware appoints Octane Communication StudioGMT 12:19 2017 Tuesday ,18 April
ZAGH: Jewelry design that speaks to your soulMaintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Send your comments
Your comment as a visitor