Central bank demand for gold remains strong. Central banks continue to buy gold to diversify their assets away from currencies that are seen to be debasing. South Korea bought 20 tonnes of gold in February 2013 after prices had slid 11% since October 2012. That adds to the 30 tonnes of gold it bought during the course of 2012.

Key events to watch this week . Industrial production indices for US, UK and India will be released and will be watched closely to assess the persistence of the global economic recovery. Strong numbers are likely to confirm the improving growth outlook, providing support to more cyclical commodities. US advance retail sales and Uni of Michigan confidence index will also be monitored as consumer sector’s strength is fundamental for a full recovery of the US economy.

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