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Tuesday, March 27, 2018 5:18:07 AM
Gold Price Drivers: The Fed, Trade War Fears, the US Dollar
Part 8
Gold Price Drivers: The Fed, Trade War Fears, the US Dollar PART 8 OF 10
Why Physical Gold Demand Should Support Gold Prices in 2018
By Annie Gilroy | Mar 26, 2018 5:04 pm EDT
Physical gold demand
According to the World Gold Council (or WGC), the demand for physical gold in 4Q17 increased 20% sequentially. The demand for gold jewelry increased 4% in 2017, which was the first annual rise since 2013.
China’s safe-haven buying
China’s gold consumption remained strong in 2017 after a lackluster 2016. Its demand for bars and coins in 2017 was the second-highest on record. Fears of potential depreciation of the yuan, rising inflation, and restrictions on property market investments helped support the demand for gold in China. According to Metals Focus, China paints a positive picture for local jewelry consumption following the Chinese New Year. It also said retailers in the country are replenishing inventories after the holiday season. The factors that supported gold demand in 2017 should continue to underpin the demand in 2018 as well.
India’s gold demand
According to WGC, India’s gold demand increased 9% in 2017 to 727 tons. The positive economic backdrop, lower prices, and improved consumer sentiment supported the country’s gold demand.
The outlook for gold demand in 2018 also looks positive, given the positive initiatives the government undertook in its 2018 budget. These initiatives include the development of a comprehensive policy and the creation of a gold exchange. The WGC expects Indian gold demand to stabilize at 700–800 tons.
Gold jewelry purchases by the world’s two largest consumers—China and India—usually support gold prices (GLD). The brighter demand outlook from these countries could support gold prices.
This development could lead to strength in the stock prices of companies such as IAMGOLD (IAG), Gold Fields (GFI), Kinross Gold (KGC), and Franco-Nevada (FNV). These stocks were among the ones generating the highest returns in 2017. They returned 51.4%, 42.9%, 38.9%, and 33.8%, respectively.
http://editors.aws.marketrealist.com/2018/03/why-physical-gold-demand-should-support-gold-prices-in-2018/
Part 8
Gold Price Drivers: The Fed, Trade War Fears, the US Dollar PART 8 OF 10
Why Physical Gold Demand Should Support Gold Prices in 2018
By Annie Gilroy | Mar 26, 2018 5:04 pm EDT
Physical gold demand
According to the World Gold Council (or WGC), the demand for physical gold in 4Q17 increased 20% sequentially. The demand for gold jewelry increased 4% in 2017, which was the first annual rise since 2013.
China’s safe-haven buying
China’s gold consumption remained strong in 2017 after a lackluster 2016. Its demand for bars and coins in 2017 was the second-highest on record. Fears of potential depreciation of the yuan, rising inflation, and restrictions on property market investments helped support the demand for gold in China. According to Metals Focus, China paints a positive picture for local jewelry consumption following the Chinese New Year. It also said retailers in the country are replenishing inventories after the holiday season. The factors that supported gold demand in 2017 should continue to underpin the demand in 2018 as well.
India’s gold demand
According to WGC, India’s gold demand increased 9% in 2017 to 727 tons. The positive economic backdrop, lower prices, and improved consumer sentiment supported the country’s gold demand.
The outlook for gold demand in 2018 also looks positive, given the positive initiatives the government undertook in its 2018 budget. These initiatives include the development of a comprehensive policy and the creation of a gold exchange. The WGC expects Indian gold demand to stabilize at 700–800 tons.
Gold jewelry purchases by the world’s two largest consumers—China and India—usually support gold prices (GLD). The brighter demand outlook from these countries could support gold prices.
This development could lead to strength in the stock prices of companies such as IAMGOLD (IAG), Gold Fields (GFI), Kinross Gold (KGC), and Franco-Nevada (FNV). These stocks were among the ones generating the highest returns in 2017. They returned 51.4%, 42.9%, 38.9%, and 33.8%, respectively.
http://editors.aws.marketrealist.com/2018/03/why-physical-gold-demand-should-support-gold-prices-in-2018/
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