Industry News

Gold demand to increase by end of 2011

Though the demand for gold dropped in the second quarter of 2011, the precious metal is expected to benefit from an increased demand at the end of the year, according to Reuters.

According to the World Gold Council, gold mining stocks may benefit from the increased demand for the metal, as robust jewelry buying in India and China and a recovery in investment demand could lead to a higher-than-expected value for these assets.

The overall demand for the commodity fell 17 percent year-on-year in the three months from April to June, but the third quarter opened with industry analysts projecting a sharp rise due to increased investments from China and India, reported Reuters.

Saudi Arabia has also contributed a significant amount of resources to investing in the metal, helping gold mining stocks move up due to the Arab nation's demand for the commodity, Commodity Online reported.

Gold operations in Sonora, Mexico, may benefit from the increased demand for the precious metal, as this region holds a large deposit of the resource.