GOLD JEWELLERY DEMAND HIGHEST SINCE 2005

Gold jewellery has made a strong start in 2014, with global demand in the first quarter reaching its highest volume in a decade.

Although the World Gold Council’s Gold Demand Trends: First quarter 2014 report described the three per cent increase in gold jewellery demand to 570.7 tonnes as “modest growth”, it also stated that this was the largest recorded first quarter volume since 2005.

This boost in demand was primarily attributed to lower gold prices; the average price in United States dollars was 21 per cent lower than in the previous year.

The drop in gold price was echoed in other markets with European and Chinese consumers said to have particularly benefited from a similar lower-price environment. The strengthening economic situation was also noted as a contributing factor.

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Banks accused of gold fix price manipulation

The five banks tasked with setting the London benchmark gold price have been accused of manipulating prices in a federal lawsuit filed at a New York court.

New York resident and COMEX trader Kevin Maher, who filed the report, claims the banks – Societe Generale, Deutsche Bank, Barclays, Bank of Nova Scotia and HSBC – colluded to manipulate prices for profit in a large scale fraud plot.

Maher, who says he bought and sold gold, gold futures and options, has filed the suit on behalf of himself and other investors who held or traded gold and gold derivatives based on the bank-set gold fix from 2004 to now. The lawsuit is seeking unspecified financial compensation.

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