World Gold Demand on Recovery Path, to Rise Further

Source:

Growing acceptance of higher bullion prices and rapid economic growth in key consuming nations would lift gold buying, which is already on a recovery path after falling by nearly 10 percent last year due to volatile markets.

Global gold demand is set to pick up with the end of summer doldrums and the last quarter may see more buying than last year as prices have been less volatile, analysts and traders say.

Growing acceptance of higher bullion prices and rapid economic growth in key consuming nations would lift gold buying, which is already on a recovery path after falling by nearly 10 percent last year due to volatile markets.

Spot gold traded in a wide range of more than $200 an ounce in 2006, when it hit a 26-year high of $730. But the metal has been less choppy this year, with prices ranging in a band of less than $100. The metal was quoted at around $668 on Friday.

"I suspect as we move towards the latter part of the year, the buying pressure will increase in line with the fact that we are heading towards the Christmas period, the Chinese New Year etc.," said Darren Heathcote of Investec Australia in Sydney.

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