The World Gold Council expects the gold jewelry demand in the United States to remain soft in the coming months after rising 17 percent in 2010.
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In its latest Gold Demand Trends report, the WGC states, “The opening weeks of 2011 have been characterized by an East/West divide.” The "disturbance" among investors in Western markets was due to the falling of gold prices in January. On the other hand, physical demand for gold has increased in the east. Strong demand for gold jewelry in markets such as China and India is expected to continue throughout 2011. However, the U.S. market hasn't been mentioned as a potential leader for jewelry demand in the coming year.
According to the report, the long-running decline in U.S. demand for gold jewelry continued throughout 2010, although the pace of the decline did slow somewhat. Fourth-quarter demand for gold jewelry totaled 47 tons, down 16 percent as compared to the fourth quarter 2009. In value terms, U.S. demand rose by a modest 4 percent in the fourth quarter to $2 billion and was up 8 percent on the year to $5 billion. This remains below in 2008 and is down from the peak year of 2006, when U.S. demand totaled $6 billion.
Despite of its low demand in the U.S., gold performed well globally, last year. In addition to the 17 percent increase in demand for gold jewelry, technology demand climbed 12 percent, while investment demand slipped just 2 percent. Overall there was a 9 percent increase in demand for gold in 2010 despite a 40 percent increase in the metal’s annual average price over the past three years. The metal’s average per-ounce price reached $1,225 in 2010, up 26 percent from $972 an ounce in 2009.
Image via WikipediaIn its latest Gold Demand Trends report, the WGC states, “The opening weeks of 2011 have been characterized by an East/West divide.” The "disturbance" among investors in Western markets was due to the falling of gold prices in January. On the other hand, physical demand for gold has increased in the east. Strong demand for gold jewelry in markets such as China and India is expected to continue throughout 2011. However, the U.S. market hasn't been mentioned as a potential leader for jewelry demand in the coming year.
According to the report, the long-running decline in U.S. demand for gold jewelry continued throughout 2010, although the pace of the decline did slow somewhat. Fourth-quarter demand for gold jewelry totaled 47 tons, down 16 percent as compared to the fourth quarter 2009. In value terms, U.S. demand rose by a modest 4 percent in the fourth quarter to $2 billion and was up 8 percent on the year to $5 billion. This remains below in 2008 and is down from the peak year of 2006, when U.S. demand totaled $6 billion.
Despite of its low demand in the U.S., gold performed well globally, last year. In addition to the 17 percent increase in demand for gold jewelry, technology demand climbed 12 percent, while investment demand slipped just 2 percent. Overall there was a 9 percent increase in demand for gold in 2010 despite a 40 percent increase in the metal’s annual average price over the past three years. The metal’s average per-ounce price reached $1,225 in 2010, up 26 percent from $972 an ounce in 2009.
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