“Global jewelery demand moved 17% higher last year, according to the World Gold Council, amounting to 2,209.5 tonnes. Meanwhile bar and coin investment surged 28% during 2013 to 1,654.1 tonnes, the highest-ever recorded total,” reports Royston Wild for Forbes.
In China, it is not central bank buying that has made the country one of the largest gold consumers in the world. It is retail consumers and investors that boosting demand there. The renminbi is not a fully convertible currency and that boosts the allure of gold to Chinese investors looking to diversify their portfolios. [Good Month for Gold ETFs]
“What I find supportive of this bullish thesis is the fact that on both the daily and the weekly chart, momentum was shifting higher on the second low of this double bottom. In addition, I still see a lot of pessimism on The Street in this particular market. I have a funny feeling that if Gold starts to approach our 1500 target, the optimism should start to pick up,” adds Parets.
SPDR Gold Shares
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of GLD/
