Mining Weekly reported that according to the World Gold Council (WGC), the gold price rose 9.2 percent during the first half of 2014, outperforming nearly all other asset classes.
As quoted in the market news:
‘So far, so good. Prices are up, volatility is down and gold has defied the bearish outlook that many gold analysts trumpeted at the beginning of 2014. Early indicators suggest that consumer demand remains resilient, even after a record year in 2013,’ the council said in a market commentary report.
Central bank net purchases of gold also picked up over the six months, adding around 180 t to official reserves between January and May, while jewellery demand had its best first quarter since 2005.
While investment demand in some sectors had, in fact, been tepid, the WGC noted that interest in gold was gaining momentum.
‘Net long positions in the futures market have gradually increased as short positions have been covered, exchange-traded funds have experienced inflows in recent months, and coin sales are increasing,’ it stated.