23
July
Gold demand slows but remains good inflation hedge
23 July 2009 The Telegraph
Investment in gold exchange traded funds, gold coins and small bars slowed in the second quarter.
The gold price increased modestly in the second quarter, supported by ongoing inflation fears but demand for gold from private investors has slowed after its record start to the year, according to World Gold Council's latest Gold Investment Digest.
The gold price edged slightly higher in the second quarter, ending the quarter at US$934.50/oz, on the London PM fix, compared with US$916.50/oz at the end of quarter one.
Natalie Dempster, Head of Investment, North America, World Gold Council said: "Fears of future inflation drove investor interest as seen by the continued demand for the ETFs during the quarter. Traditionally, gold has been an effective inflation hedge, and as our recent study shows, also performs well during low to medium inflationary environments."
