New high prices to put gloss on bullion
By Hu Xiaocen |
May 23, 2012, Wednesday
|
Print Edition
Print Edition
GOLD prices will hit a new high this year on investment demand and an easing in monetary policies in key emerging markets, including China, and these will combine to put a shining gloss on the metal, Thomson Reuters said yesterday.
The price of gold may reach US$1,920 per ounce this year, supported by governments in key emerging nations loosening their harsh monetary stance amid slowing economies, including China, the business data provider said in a report.
The average trading price of gold is expected to be US$1,685 for the whole year. Although this predicted price is a downward revision from the previous projection, investment demand will power the price close to US$2,000, but not exceeding the threshold, said Philip Klapwijk, global head of metal analytics at the New York-based firm.
The report sees an oversupply of the metal in 2012 but Klapwijk said the glut will be absorbed through investment demand and purchases by central banks.
The world demand for bullion bars soared by a sharp 36 percent last year to 1,194 tons, mainly due to a strong hoarding demand in the Chinese market.
"Chinese consumers continued to look to gold as a means of diversifying assets, as well as protection against rising inflation and a weakening domestic currency," the report said.
Indian demand for jewelry dimmed last year but the Chinese market hit a new record high.
"Higher gold prices failed to dampen Chinese jewelry demand. Chinese demand has risen above 110 percent since 2005," the report said.
The price of gold may reach US$1,920 per ounce this year, supported by governments in key emerging nations loosening their harsh monetary stance amid slowing economies, including China, the business data provider said in a report.
The average trading price of gold is expected to be US$1,685 for the whole year. Although this predicted price is a downward revision from the previous projection, investment demand will power the price close to US$2,000, but not exceeding the threshold, said Philip Klapwijk, global head of metal analytics at the New York-based firm.
The report sees an oversupply of the metal in 2012 but Klapwijk said the glut will be absorbed through investment demand and purchases by central banks.
The world demand for bullion bars soared by a sharp 36 percent last year to 1,194 tons, mainly due to a strong hoarding demand in the Chinese market.
"Chinese consumers continued to look to gold as a means of diversifying assets, as well as protection against rising inflation and a weakening domestic currency," the report said.
Indian demand for jewelry dimmed last year but the Chinese market hit a new record high.
"Higher gold prices failed to dampen Chinese jewelry demand. Chinese demand has risen above 110 percent since 2005," the report said.
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