World Gold Council second quarter review showed that the demand for Gold dipped by 7% to 990 tonnes in second quarter 2012. Report from World Gold council shook the prices in the second half of the week. China and India that are the major consumers of Gold witnessed decline in consumption in Q2-12.
Indian investment and jewellery demand declined to 181.3 tonnes compared to 294.5 tonnes in corresponding period previous year. Concerns over weak monsoon along with inflation and higher prices affected Gold consumption in India. The total investment and jewellery demand in China was 144.9 tonnes, down 7%. Central Banks continued to accumulate Gold with official sector demand rising to 157.5 tonnes in second quarter, double than the previous year.
SPDR Gold ETF holdings stood at 1263.5 tonnes. Top fund managers like George Soros and John Paulson have increased their stake in SPDR Gold shares as per media reports. Hopes of some concerted action from European Central Bank to solve debt crisis temporarily supported Gold. COMEX Gold December futures on NYMEX registered weekly loss of 0.2% and settled at $ 1619.4 per troy ounce.
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