17 Feb 2015
Current fundamental trends in Gold bullish for prices – Sunshine Profits
FXStreet (Barcelona) - Arkadiusz Sieroń of Sunshine Profits, comments on the ‘Gold demand trends for 2014’ published by the World Gold Council, and views that the fundamental development of demand and supply trends stands bullish for gold prices.
Key Quotes
“A full year gold demand amounted to 3,923.7 tons, which means a 4 percent drop. It was caused by a10percent decline in jewellery demand. The decline is not surprising given the price-driven jewellery demand surge in 2013, however the 33 percent plunge in Chinese demand is substantial (on the other hand, Indian demand for jewelry was up 8 percent).”
“… outflows from gold-backed ETFs declined from 880 tons in 2013 to 159 tons last year, which indicates that the sentiment for gold improved. According to the report, so far in 2015 ETFs have actually seen inflows, partially because of the Swiss National Bank’s actions.”
“Although the demand for gold dropped in the 2014 reflecting partially the slowdown in China, there are some indications that the gold market fundamentals are improving.”
“Actually, the Q4 2014 demand grew by 6 percent and the beginning of 2015, full of important events, has witnessed ETF inflows so far.”
“Thus, the current fundamental trends in the development of demand and supply are bullish for the gold prices (especially in terms of the euro – in 2014 the gold price in terms of the euro rose by 14%), however investors should be aware that the markets are quite emotional in the short run and can deviate from the fundamentals.”
Key Quotes
“A full year gold demand amounted to 3,923.7 tons, which means a 4 percent drop. It was caused by a10percent decline in jewellery demand. The decline is not surprising given the price-driven jewellery demand surge in 2013, however the 33 percent plunge in Chinese demand is substantial (on the other hand, Indian demand for jewelry was up 8 percent).”
“… outflows from gold-backed ETFs declined from 880 tons in 2013 to 159 tons last year, which indicates that the sentiment for gold improved. According to the report, so far in 2015 ETFs have actually seen inflows, partially because of the Swiss National Bank’s actions.”
“Although the demand for gold dropped in the 2014 reflecting partially the slowdown in China, there are some indications that the gold market fundamentals are improving.”
“Actually, the Q4 2014 demand grew by 6 percent and the beginning of 2015, full of important events, has witnessed ETF inflows so far.”
“Thus, the current fundamental trends in the development of demand and supply are bullish for the gold prices (especially in terms of the euro – in 2014 the gold price in terms of the euro rose by 14%), however investors should be aware that the markets are quite emotional in the short run and can deviate from the fundamentals.”