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China May Overcome India in Demand for Gold; Wheat Prices Fall; De Beers Sales Dropped on Gems

July 24, 2009 at 19:21 by Vladimir Vyun

China may overcome India in demand for gold. China became the first of the major economies to restore from the worldwide economical decline resulting in possibility that the country would become the world’s biggest consumer of gold this year. Demand for gold in China rose to 105.2 tons from 103.3 tons (1.8 percent) while purchases from India in the first quarter fell to 17.7 metric tons from 107.2 tons (83 percent) a previous year.

Concern that U.S. may change index-fund rules causes wheat prices to fall today. Gary Gensler, the chairman of the Commodity Futures Trading Commission, told a Senate subcommittee this week that the agency is planning to phase out waivers that allow index traders to exceed position limits with the goal to bring cash prices and futures closer. September futures for wheat fell $0.0425 (0.8 percent) to $5.275/bushel by 9:47 on CBoT.

De Beers sales dropped most on gem demand since 1974. The largest diamond company in the world, De Beers, reported the greatest fall in sales of unpolished and uncut gems since at least 1974 because demand slumped in the U.S., Europe and Japan as result of the worldwide economical decline. De Beers reported today that first-half sales of rough diamonds fell to $1.4 billion (57 percent) and production slid to 6.6 million carats (73 percent) as result of shutting down mines in Botswana and Namibia by the Johannesburg-based company.

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