by Peter Cooper, ArabianMoney:
The first quarter for gold was a mirror image of a year ago with almost no selling by the exchange traded products and falling demand in China and India, according to the World Gold Council.
China bought 18 per cent less gold, with gold bar and coin purchases tumbling 55 per cent while Indian consumption was down 26 per cent. The sudden price rise in January probably put off opportunistic buyers who had swooped on bargain prices in the sell-off by the ETPs last year. Indian demand fell due to higher taxes on gold but total UAE demand was up 16 per cent mainly because of buying by Indians for personal export.
Profit taking — The WGC commented: ‘A degree of profit-taking also contributed to the year-on-year decline. The opportunistic buying that accounted for a portion of last year’s surge resulted in some of these relatively tactical buyers closing out of their positions as the price rose over the course of the quarter.’
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