/ 9 January 1998

World gold demand is up

THURSDAY, 12.30PM:

WORLDWIDE demand for gold rose 16% last year as falling prices led to a higher demand for gold in jewellery, electronics and coin production.

Total demand rose to 4 025 tons from the 1996 figure of 3 477 tons.

The rise, however, was offset by record sales of above-ground gold by central banks, investors and holders of gold “scrap”, which fueled falling bullion prices.

Bullion’s record 18-year low recorded in December was topped on Thursday night when the gold price slipped below its support base of $280 an ounce in late trade in New York.