Riffrag Business & Finance Report

LONDON – Gold Demand on third quarter fell 34 percent purchasing power triggered by the weakness in key markets Middle East and India. However, the price of gold in the last two weeks continue to soar.

World Gold Council (WGC) reported yesterday, the decline was caused by lack of jewelry shopping at WGC utama.Menurut markets, increased demand from July to September period occurred only in greater China,, China, Hong Kong, and Taiwan, by 10 percent or equivalent to 128 , 6 tons. While the types of diamond jewelry rose seven percent. “Outlook for gold investment with a positive overall level of demand would improve, supported by continued economic growth.

Uncertainty of currency exchange rates and inflation have been encouraging the diversification, “said Aram WGC chief executive in a statement yesterday Shishmanian. According to the investment research manager of WGC Rozanna Wozniak, although the quarterly period decreased demand for gold, speculation on the price of gold in the long term remains high. “For most of last year, the purchase was dependent physical. Now, buyers seem more oriented to the financial markets in which some people less visible in the derivatives market, futures, or transactions over-the-counter (OTC), “said Wozniak.

She added that the strengthening gold price recently because of the good news of central banks and the decline in U.S. dollar exchange rate. “That resulted in the potential of gold demand in the future,” he said. Announcements purchase 200 tons of gold by Central Bank of India is considered as a trigger soaring gold prices since the beginning of November was later lalu.Kondisi considered buying momentum that pushed prices to the highest level prices.

In addition, gold prices also pushed consumer menjauhnya of other metal commodities. Consumers and central banks prefer to buy gold as a diversification of the portfolio. Based on its territory, gold jewelry demand in India in the third-quarter 2009 fell 42 percent to 116.6 tonnes compared to only the previous quarter. However, that number edged up from the lowest level earlier this year. In the retail market, gold sales in India also fell 67 percent to only 26 tons in July-September period.

While in the Middle East, gold buying activity in the same quarter fell 34% to only 69 tons. The increase in demand in China is expected to reach double digits as the impact of their economic improvement in the middle of a crisis. “China market is set for some time, so consumers there is still much to collect the gold,” Wozniak said. Meanwhile, yesterday’s gold price could reach record highs in the level of USD1.150 per ounce.

However, in the afternoon trading back down to the level of USD144, 7 after a stronger U.S. dollar prices, fueled rising U.S. consumer prices and encourage inflation. From the beginning of 2009, the price of gold has increased about 30 percent. “Outlook for the future of gold is still strong. Although still will fluctuate, expected to be transparent USD1.120 per ons.Tidak be nothing to change except for a stronger U.S. economic data, making the U.S. central bank changes interest rates,” said Deputy General Manager of Broker Commodity Okato Shoji Co’s Kename Gokon.

Another analyst, director of ETF Securities New Zealand and Australia, Nigel Phelan, said that the rally in gold prices triggered by the announcement this month the International Monetary Fund (IMF) who sold the gold to the Central Bank of India as much as 200 tons. “A lot of markets participate after seeing the sale of gold to central banks, including China, Russia and lainnya.Mereka central bank gold reserves would increase as a diversification strategy to prevent the U.S. dollar volatility,” said Phelan.

“Gold is viewed as one of the main alternative to currencies other than holding. The price of gold has also been a key barometer of investor confidence in government policy,” he said.