Brazil and Kazakhstan were some of the largest contributors to the 9% yoy growth in October, buying 17.2 and 7.5 tonnes, respectively. Investors also continued to buy gold, pushing global ETP holdings to over 83 million ounces last week, a fresh record high.
Uncertainty over the outlook for the Eurozone and the precarious position of the US economy approaching the ‘”fiscal cliff” remain the main risks to the global economic recovery. [Hedge Funds Buy Gold by the Ton with ETFs]
While the market remains optimistic that Eurozone ministers will come to an agreement to clear the way for the next disbursement of Greek bailout funds when they meet today, further delays are likely to be supportive of defensive assets like gold.
Key events to watch this week
The next Eurogroup meeting to discuss the fate of Greece’s finances this week is likely to be the main distraction for investors, along with any news flow coming from senior Democrats and Republicans on the progress toward a potential resolution of the US ‘fiscal cliff’ issue.
ETFS Physical Swiss Gold Shares (NYSEArca: SGOL)
