Reply #43: New oil highs spark gold rush

[54anickel]

http://www.guardian.co.uk/print/0%2C3858%2C4997826-110373%2C00.html

The growing affluence of Saudi Arabia and other Middle Eastern oil producers from record crude oil prices has triggered huge new consumer demand in the region for an even more precious commodity: gold.

snip>

Demand for gold in Britain fell 5% as consumers cut spending in anticipation of harsher interest rate rises, but it leaped 12% in Saudi Arabia, while the UAE and other Gulf states saw an 11% rise.

China and Vietnam showed 30% and 50% rises respectively, but these figures seemed better because the Sars virus depressed demand in 2003.

Other factors helping the overall global demand rise in tonnage terms was stronger global economic growth, the relative absence of price volatility and continuing concerns about the long-term commercial and political outlook.

However, there have also been big promotional pushes in markets such as China, where a television advertising blitz has been launched. :grr:

more...