India Drives Rise in Gold Jewelry Demand

RAPAPORT... World demand for gold jewelry grew 4% year on year to2,135.5 tonnes in 2017, boosted by growth in India, the World Gold Council (WGC) reported Tuesday. India saw annual growth of 12% to 562.7 tonnes, led by strongmomentum in the fourth quarter as gold prices decreased in rupee terms. The holidayseason -beginning with the Dhanteras wedding festival in early October -also drove sales. The Indian government's decision to suspend the Preventionof Money Laundering Act (PMLA) regulation for the jewelry industry had apositive impact, particularly on demand in the rural areas, which rely heavilyon cash purchases. Demand for gold in China, still the largest market for goldjewelry, jumped 3% to 646.9 tonnes in 2017, propelled by strong holiday sales inthe second half. "Retailers continue to better meet consumers' changing needs, and sentiment is lifted by the supportive economic environment," the WGC stated. Global demand for gold in all forms - such as bars and coins, and for technology, finance and investment - fell 7% to 4,071.7 tonnes.