20000302

Gold demand

rose 24 pc in

last quarter

of 1999

RECORDER REPORT

KARACHI: Pakistan's demand for gold rose to 27.9 tonnes in the fourth quarter of 1999, lifting the demand for the year to 121.8 tonnes, showing an increase of 24 percent compared with a year ago.

Yousuf Akhtar Hussain, Manager Pakistan, World Gold Council, said that the steady increase in demand in the last quarter of 1999 is an affirmation of investors confidence in gold as a safe haven which increased the demand to an all time high of 121.8 tonnes.

According to a dealer, the demand was up because of erosion in real estate prices, stability of Pak rupee against dollar and downward slide in share market during the first nine months of 1999.

The gold demand in the Middle East weakened by wildly fluctuating gold prices, dropped from 156.3 tonnes to 149.3 tonnes, a decrease of 4.5 percent over the same period in 1998.

In the Gulf States, gold demand fell to 27.9 tonnes during the fourth quarter of 1999, decline of 9 percent over the same period last year. Saudi Arabia too followed a similar trend with off-take at 39.1 tonnes, lower by 11 percent compared to the same period last year.

Turkey, hit by consecutive earthquakes and greatly reduced tourist arrivals, did not fare any better. Gold demand fell to 20 tonnes, a fall of 33 percent compared to the same period last year.

Egypt, on the other hand, outperformed all its Middle Eastern neighbours, with off-take up to 27.9 tonnes, an increase of 39 percent over the same period last year. India too, kept its record gold consumption, with yearned demand at 838.8 tonnes, 3 percent higher than last year.

"Uncertainty caused by volatile gold prices saw weak demand at the beginning of the period, but off-take increased during the quarter with the return of price stability, the Eid buying season during December and various trade promotion, said Moaz Barakat, Regional Director for Middle East, World Gold Council.