The World Gold Council has released its report on central bank buying of gold and they see demand falling to around 300 tons this year. That’s down from last years estimate of 409t.
WGC’s Marcus Grubb sees a slowdown in CB buying coming over the next few years. China is expected to remain the biggest consumers and Indian demand will recover as import restrictions are eased.
Speaking in Vienna he also notes that the gold market will become more dependent on consumers and less on investors. Even so prices are likely to rise to new record levels within the next 5 years.
The switch from a investment market to a more consumer driven market was something we saw when we had the big flush out last year, particularly from the 1600 level. That move burnt a lot of people and most of them haven’t ventured back.
In the here and now, gold continues to climb from the 1240 support level and may look top test the previous broken support point at 1272
Gold daily chart 11 06 2014
