Gold is seeing greater support from safe-haven demand after currency devaluations across Asia added to investment demand for a better store of value than paper currencies or stocks and bonds. China and India are the world’s two largest gold consumers. According to the World Gold Council, India imported 891.5 tons of gold in 2014 while demand was 811.1 metric tons. The council believes consumption will increase to between 900 tons and 1,000 tons this year. [India Unlikely to Stem Gold’s Decline]
Gold has also benefited from the dollar’s slack performance this year. Most raw materials are priced in dollars and historically a strong USD has pressured commodities.
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Tom Lydon’s clients own shares of GLD.