Egypt and Turkey led a slump in Middle East gold demand in the second quarter, with only Iran showing gains in the region’s investment and jewelry consumption. Middle East jewelry demand declined 22% to 45 tons, with Egypt down 40% to 5.3 tons, the lowest on record, according to the World Gold Council. In Turkey, first-half investment demand for coins and bars was 8.8 tons, the lowest since WGC records began in 2000. Iran’s jewelry demand, however, jumped 10% and investment demand gained 2%. “Demand in most markets across the region was affected by any or all of the following: the high and sharply rising gold price, ongoing political instability, continued pressure on revenue from relatively weak oil prices and sliding tourist numbers,” the WGC said. “Demand in Iran continued to improve on the wave of optimism sparked by the removal of sanctions.” Saudi Arabia, the biggest gold jewelry buyer in the region, saw a 25% drop in demand in the three months ended June 30 while its bar and coin consumption fell 21% to 2.5 tons. Iran was the biggest buyer of gold for investment in the region, purchasing 7.2 tons in the quarter.
