Gold price rose modestly in Q1 2010

Gold price rose moderately during Q1 2010 as it was supported by strong seasonal jewellery demand in India and China coupled with continued global investment flows,World Gold Council today said. “Gold’s continuing upward price trend is anchored in solid fundamentals. A strong recovery in Indian jewellery market from the low levels of demand experienced in […]

Gold price rose moderately during Q1 2010 as it was supported by strong seasonal jewellery demand in India and China coupled with continued global investment flows,World Gold Council today said.

“Gold’s continuing upward price trend is anchored in solid fundamentals. A strong recovery in Indian jewellery market from the low levels of demand experienced in early 2009,was further reinforced by rupee appreciation against the dollar. When coupled with strong physical demand in China during the quarter,these trends created positive support for gold,” WGC said in a statement here.

In its latest Gold Investment Digest,WGC said,the yellow metal rose marginally during Q1 2010,ending the quarter at USD 1,115.50 an ounce compared with USD 1,087.50 an ounce at the end of Q4 2009 mainly on stronger jewellery demand in India and China.

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Gold was one of the least volatile commodities,with annualised average volatility falling to 17.6 per cent from 20.0 per cent in the previous quarter,WGC said.

By the end of Q1 2010,gold price volatility fell further to 14.8 per cent on a 22 day rolling basis,below its historical average,it said.

The report further said investors bought 5.6 tonnes of gold through exchange traded funds in Q1 2010,bringing the total amount of the yellow metal in major physically-backed ETFs to a new record of 1,768 tonnes,worth USD 63.4 billion,at the quarter-end gold price.