Don't write-off gold now, Asian demand to remain robust in 2013, says WGC

NEW DELHI (Scrap Monster) : If the projections of the World Gold Council (WGC) are anything to go by, one has to wait a bit longer to write-off the precious yellow metal.

WGC says India’s gold demand is expected to grow by 12% in calendar year 2013. The Council estimates the annual gold demand to reach around 965 tonnes up from 864 tonnes in 2012. The data for the first three months are encouraging, says WGC. The demand for gold has surged by 27% during Q1 2013 to 256.5 tonnes in comparison with same quarter the previous year.

The precious metal is poised to put up a strong show in the forthcoming quarter too. The Council cites two reasons for the demand to remain strong. Firstly, a good monsoon will kick off buying spree in rural areas. Secondly, the number of auspicious days for marriage is comparatively more than the previous year, which will spike up retail demand.

The demand for gold rose in China by 20% during the first quarter of the year. Jewellery demand witnessed 19% growth. The physical buying of coins and bars also grew by 22% during the quarter.

It was but the physical demand for gold in Asian countries that helped it stem further losses and regain at least some of the lost grounds post its drastic fall mid-April. WGC believes that gold demand in India and China will continue to grow with greater thrust during the quarters to come, which ultimately should provide good support to gold prices too.