The demand for gold, according to Gold Demand Trend figures released by the Geneva-based World Gold Council, was over 240 tonnes in the Q198, where after demand for gold had declined in the second quarter which witnessed a demand of around 200 tonnes. In the third quarter, it is for the second consecutive quarter that the demand for gold declined.

However, India's imports of gold in all the three quarters of 1998 at 479.4 tonnes, is 26.5 per cent higher than 378.8 tonnes imported in the previous year's three quarters.

"The scenario today has changed," said WGC's financial institutions manager, Derrick Machado. "Liberalisation of imports andthe consequent improved method of measuring demand introduced in he last quarter makes direct comparisons between 1997 and 1998 less appropriate. While in the past India's import data was based on estimates of imports from Dubai, it is now collected directly from gold importing banks and official bodies."

The good third quarter statistics were the result of a steady performance by jewellery and a surge in investment, especially in USA where coin sales rose to near record levels, WGC note said.

International gold demand in the third quarter recovered from the poor start to the yar, although the economic and currencies crisis in Asia kept the demand below normal levels in several countries. Total demand in countries monitored by WGC was 676 tonnes, just one per cent below the record third quarter of 1997.