London based metals research house GFMS claims the factors that drove gold above $1000 an ounce last month are still present, despite a recent fall to about $900 an ounce, so the price can be retrace again
London-based metals research house GFMS claims the factors that drove gold above $1000/oz last month are still present, despite a recent fall to about $900/oz, so the price can be retrace again.
A year ago, when gold was about $675/oz, GFMS predicted it could rise to $850/oz or higher after a severe correction in the US economy, a prediction that turned out to be conservative.
Global gold output fell 0,4% last year, compared with 2006. This 11-year low was mainly because of lower output by South African mines, while gold production rose in Indonesia and China, GFMS said.
Last year, growing demand from investors for gold in the second part of the year was offset by declining jewellery sector demand; in the first half of the year the opposite happened.
Most jewellery demand came from the Middle East but there was a substantial increase in demand from China. Jewellers in Italy and the US bought less gold than in 2006.