Gold demand zooms 50% to 211tn in Q1CY07

Gold demand in India, the world's largest consumer of the yellow metal,  zoomed 50% to 211 tonne in the first quarter of the current year when compared with 140.7 tonne in the same period last year, thanks to higher jewellery and retail investment demand, according to a report by Gold Fields Minerals Services (GFMS) for the World Gold Council (WGC).

The report further says that demand rose by a record 75% in rupee terms during the quarter, which can be attributed mainly to strong economic growth and the onset of the wedding season.

The total demand of 211 tonne was just six tonne short of the previous first quarter peak hit in 2001 when gold was hovering around less than half the price now.

The outlook for the second quarter is also very positive, the report added.