Embargoed until

08.00 26/01/2011

Location and date New York / London 26 January 2011

Gold price in 2010 driven by recovery in key sectors of

demand and continued global economic uncertainty
Investors reap dual rewards of return and diversification as gold
outperforms equities, treasuries and commodity indices

The gold price rose for the tenth consecutive year in 2010 reaching US$1,405.50/oz
by the end of December on the London PM fix, a 29 percent increase from last year’s
levels. According to the World Gold Council (WGC), which today released its Gold
Investment Digest for the fourth quarter and full-year 2010, last year’s price
performance was driven by developments in key gold markets. China saw increased
investment activity, driven in part by innovative new gold investment vehicles offering
improved access to the gold market, while jewellery consumption recorded a rebound
in India, the world’s largest gold market. Globally, investors remained concerned about
uncertainty in the macro-economic environment and turned to gold to hedge against
weakness in the US dollar and rising inflation in many economies.
Juan Carlos Artigas, Investment Research Manager, the World Gold Council
commented:

“A combination of global macro-economic conditions and favourable supply and

demand fundamentals continued to drive gold’s strong price performance in 2010.
Investors also continued to buy gold, a foundation asset that bears no default risk, in
part to express an increasing sensitivity to the possibility of a tail-risk event involving
sovereign debt as well as ongoing concerns over systemic risk. Gold’s relatively low
volatility and lack of correlation to many assets has made it an ideal candidate for
portfolio diversification and risk management strategies.

“The gold story in 2010 is about growth in demand and not just economic concerns. It
is significant that consumers increased their gold jewellery spending during the first
nine months of last year, despite the rising price of gold. Strong investment activity
and a normalisation of gold demand in technological applications during the same
period further supported gold’s stellar appreciation.”

Key findings from the latest Gold Investment Digest show that:

• The gold price rose by 29% in 2010. By comparison the S&P Goldman Sachs
Commodities Index (S&P GSCI) rose by 20%, the S&P 500 rose by 13%, the
MSCI World ex US Index increased by 6% in US dollar terms, and the
Barclays US Treasuries Aggregate Index rose only by 6% over the year.

• Gold price volatility at 16% on an annualised basis in 2010 remained

consistent with its long-term trend. By comparison, volatility on the S&P
 Goldman Sachs Commodity Index was 21% during the year, based on daily
returns.

• Gold benefited from the continued contagion from European sovereign debt
problems as investors’ hedge their currency risk. This was evidenced by
strong gold buying in ETFs, bars, coins and other investment vehicles in
Europe and other parts of the world.

• Investors bought 361 tonnes of gold in the ETFs the WGC monitors in 2010,
bringing total holdings to a new high of 2,167 tonnes, worth US$98 billion.
This represents the second largest yearly inflow on record, after the 617
tonnes of net inflows experienced in 2009.

• During the first nine months of 2010, global jewellery demand totalled 1,468
tonnes, increasing 18% from the same period during 2009. Gold demand for
technological and industrial applications continued to recover during the first
nine months of 2010, registering a 19% increase over the same period in
2009. Complete full-year data for gold demand will be available in February
when the WGC publishes its Gold Demand Trends report.

• Central banks became slight net buyers of gold for the full-year, after two
decades as a steady source of supply to the market. The IMF successfully
completed its gold sales programme of 403.3 tonnes without disruption to the
market. The Fund sold 200 tonnes to the Reserve Bank of India, 10 tonnes to
Sri Lanka, 10 tonnes to Bangladesh and 2 tonnes to Mauritius, all in off-
market transactions executed at market prices. The remaining sales were
conducted through on-market sales within the ceiling set by the third Central
Bank Gold Agreement (CBGA3).

The full Gold Investment Digest report and accompanying video can be downloaded
from http://www.gold.org/media/
ENDS

For further information please contact:

David Schraeder Jillian Chertok
Media Relations MSL Group
World Gold Council
T +1 917 224 6473 T +1 212 468 4306
E david.schraeder@gold.org E jillian.chertok@mslgroup.com

Stephanie Mackrell Quintin Keanie

Media Relations Capital MSL
World Gold Council
T +44 20 7826 4763 T +44 20 7307 5330
E stephanie.mackrell@gold.org E quintin.keanie@capitalmsl.com
Note to editors:

World Gold Council

The World Gold Council (WGC) is the market development organisation for the gold industry.
Working within the investment, jewellery and technology sectors, as well as engaging in government
affairs, its purpose is to provide industry leadership, whilst stimulating and sustaining demand for
gold.

We develop gold-backed solutions, services and markets, based on true market insight. As a result,
we create structural shifts in demand for gold across key market sectors.

We provide insights into the international gold markets, helping people to better understand the
wealth preservation qualities of gold and its role in meeting the social and environmental needs of
society.

Based in the UK, with operations in India, the Far East, the Middle East, Europe and the USA, the
WGC is an association whose members include the world’s leading and most forward thinking gold
mining companies.

For further information visit www.gold.org.