Weaker Rupee Dents Global Gold-Jewelry Demand

RAPAPORT... Global demand for gold jewelry fell 2% year on year to 510.3tonnes in the second quarter amid a weaker Indian market, the World GoldCouncil (WGC) reported last week. Appetite for gold jewelry in India fell 8% to 147.9 tonnes inthe three months ending June 30 as local prices climbed in response to therupee weakening against the US dollar. In addition, higher spending during thesame period last year magnified the decline, as consumers increased their purchasesbefore the implementation of the country's new goods and services tax on July 1,2017. India's slowdown outweighed a 5% rise in Chinese demand to144.9 tonnes. Purchases of traditional 24-carat jewelry in China largely drovethe increase, while new marketing campaigns and innovative promotions led to a shiftin interest toward newer, higher-premium products, the WGC explained. US demandgrew 5% to a 10-year high of 28.3 tonnes. Global demand for gold in all forms - such as bars andcoins, and for technology, finance and investment - slid 4% to 964.3 tonnes. Image: Pixabay