Marcus Grubb-Managing Director of Investment at World Gold Council (WGC) stated that gold as an asset class would witness a renaissance in 2014.In his view, ETFs are not always a clear indication of the sentiment and that gold will deliver positive upside surprise in prices next year.
Gold demand in China, India and the Middle East surged in the 12 months to September while European sales contracted, underscoring a shift in the global bullion market from west to east, according to the World Gold Council.
Gold is headed for the second week of losses and is looking vulnerable to further weakness technically. Gold’s close below $1,300/oz yesterday makes it vulnerable to a sell off to test the next level of support at $1,200/oz and the June 28th low of $1,180/oz.
Acquisitions by China’s gold mining companies reached a record this year as the metal’s steepest quarterly drop in more than nine decades slashes mine values and sidelines Western competitors laden with debt.
The WGC commented on the possibility that China may beat India as top gold buyer. In the second quarter India bought 310 tons compared to China’s 294.6 tons, interesting to note given the additional import charges facing Indian buyers.
The price of gold bullion retreated from an overnight rise to $1,340 per ounce in London on Friday morning, trading back down to $1,322 – the low hit by the mid-April crash – as the U.S. dollar ticked higher.