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Consumer gold demand soft: Scotiabank

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News Business Sports Arts and Entertainment Weather Health and Science Archives Kids Teens ProgramGuide Newsletters Services Contact Us About CBC Daily News Digests News Alerts Radio-Canada - French Shop Consumer gold demand soft: Scotiabank Last Updated Wed, 01 Mar 2006 13:25:17 EST CBC News The rising price of gold has left traditional consumer demand for the precious metal "stagnant," Scotiabank said Wednesday. In its quarterly report on precious metals, the bank said the increased demand, which has pushed gold prices to a 25-year high, has come from professional and retail investors. The demand has been driven by the major gold exchange traded funds, which have seen their reserves increase by over 15 per cent or 50 tonnes since the beginning of December 2005. While investors have pushed up gold prices, jewellers and manufacturers in major markets such as India and the Middle East are seeing soft conditions, said Bernard Hunter, the director of ScotiaMocatta, the bank's precious metals division. "Following a period of rapid price appreciation it is not unusual to see physical buyers withdraw and wait for signs of stabilization or a correction before returning to the market," Hunter said. Since the beginning of December 2005, gold prices have gone from $500 US per ounce to $575 US. Gold traded on Wednesday at $565 US per ounce.