* Physical gold demand slides 20 pct to 3,349 T in 2016
* Gold market surplus biggest this century
* GFMS forecasts gold at $1,259/oz in 2017
By Jan Harvey
LONDON, Jan 26 (Reuters) - Physical gold demand fell 20
percent last year to its lowest since 2009, GFMS analysts at
Thomson Reuters said in a report on Thursday, as a rebound in
prices after three straight years of losses blunted appetite for
the metal.
Buying of jewellery, coins and bars, plus official sector
and indu
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