Global investment in gold remains strong and the market has stayed buoyant despite the rising price of the metal, helping to offset depressed demand for jewelry in all major markets outside of China, AngloGold Ashanti Ltd. (AU) said Monday. Investment purchases in India have been rising in major cities, while in the Middle East bar and coin sales in many of the Gulf states are up 7 percent, the Johannesburg-based company said. New-coin minting in Turkey rose to 11 metric tons in July and August, and the third quarter will show growth quarter-on-quarter, though levels won't match those of the same period last year, AngloGold said. The US market continues to experience robust investment demand, with bar, coin and exchange-traded fund demand still rising. AngloGold, the world's third-largest producer of the metal, produced 1.187 million troy ounces in the third quarter of the year, up from 1.127 million ounces in the preceding quarter. India's physical gold market remains under pressure after 20 percent gains over the past year in the rupee-denominated gold price, the company said. Between June and September, gold jewelry consumption fell 22 percent compared with the same period a year earlier. Scrap activity during the third quarter was slight, as the market appeared to anticipate further gold price increases, AngloGold said. However, the impact of the global recession on China's gold market has remained milder than in all other major economies. Demand for traditional 24 carat gold jewelry continues to grow compared with year-earlier periods, showing that the investment case for pure gold jewelry continues to hold sway with the Chinese consumer, the company said. Major players through the retail value chain continue to close outlets or file for bankruptcy protection, although closures and forced consolidation may help the jewelry industry recover more quickly and remain stronger once the recession ends, AngloGold said. The jewelry sector in the Middle East remained under pressure in the third quarter. Egypt, which had been bucking negative trends in the first half of the year, saw an 8 percent-10 percent decrease in third-quarter jewelry sales from a year earlier, it said. Third-quarter demand in Saudi Arabia fell 25 percent-30 percent, while in the United Arab Emirates an anticipated recovery didn't materialize with jewelry tonnage down 20 percent
