HSBC: inflation in Asia will lead to demand for gold

LONDON (Oct 20)  HSBC Holdings said that gold demand across Asia will keep expanding as inflation spurs investment purchases, estimating that the region's share of worldwide consumption jumped during the past decade, Times of Oman reported.

Demand for jewellery, bars and coins in India, Greater China, Indonesia and Vietnam increased to about 60 percent of the global total compared to 35 percent in 2004, according to data from the World Gold Council.

While gold is heading for its first annual loss since 2000 as the United States recovers and the Federal Reserve weighs tapering stimulus, the slump spurred increased demand among coin and jewellery buyers across Asia.

Gold for immediate delivery traded at USD 1.318.99 an ounce in Singapore, down 31 percent from the record in 2011. Prices, which have lost 21 percent this year, will drop in each of the next four quarters and reach a four-year low as reduced stimulus in response to faster growth curbs haven demand, the 10 most-accurate forecasters said