Chinese demand for gold made a new record

Europe

World Gold Council said on Thursday that Chinese demand for gold hit a record high in the first quarter as investors worried about inflation andthe real estate market to do so violates the downward trend in global consumption due to rising prices of precious metal.

The council said that the global demand for gold fell five percent on an annual basis to 1097.6 tons in the first three months of 2012, asreduced purchases of jewelers and the technology sector with the rise of prices an average of 22 percent over the previous year, butinvestment demand and purchases of central banks helped stem a falldemand.

China remains the largest consumer of the yellow metal in the world for the second quarter in a row, rising consumer demand for gold in China is ten percent to 255.2 tonnes, followed by India at the requestamounted to 207.6 tons, which represents a decline of 29 percent on an annual basis.

The Council stated in his quarterly report on trends in the demand forgold “refers expectations for further growth (in China) .. investors are still worried about high inflation and the problems of the real estate market continues to lead the demand for gold among investors seekingto acquire real assets.”