A report issued yesterday by the World Gold Council indicates that diminishing growth rates in China, combined with recent labor problems in South African mines, have contributed to an 11 percent reduction in global gold demand from last year.
The report, which showed how much worldwide demand for the precious metal had dropped in the third quarter, caused gold futures to drop to a one-week low.
“The combination of the Anglo miners going back to work and the World Gold Council report showing gold demand falling is pressuring precious metals,” David Meger, the director of metal trading at Vision Financial Markets in Chicago, said in a telephone interview.
Gold futures for December decreased to $1,713.80/oz., down 0.9 percent, at 1:45PM on the Comex.
Platinum futures for January touched $1,573.30/oz., down 1.1 percent, and silver futures for December dropped 0.6 percent to hit $32.674/oz.
Gold futures have been higher recently following the Federal Reserve’s announcement of a third round of easing and in anticipation of the fiscal cliff.