Gold Market Outlook - Q3, 2018 Report - ResearchAndMarkets.com
DUBLIN--(BUSINESS WIRE)--Feb 7, 2019--The “Gold Market Outlook - Q3, 2018” report has been added to ResearchAndMarkets.com’s offering.
Referring to the Q2 2018 Gold Market Outlook, the author already indicated the reasons for the weakening gold price from a 2018 interim high of $1,351.45 on April 18. These included rising Fed fund rates to a 1.50-1.75% range in the United States, but not increased since March 21, 2018, despite the US economy growing faster this year than expected (current estimate +2.8%), but on the other hand having strengthened the dollar against the euro from 1.23 to currently 1.14 since then (+8%).
In addition, the author pointed at the impact of the launch of the bitcoin last year, putting the spotlight on the booming cryptocurrency market. With the bitcoin initially having shown a strong recovery since last month to approximately $6,400 after a fall to $5,848 from a high of $8,675 on May 14, it weakened again to under $6,000 on August 14.
Having remained under pressure, an initially stabilized level between $1,290 - $1,300, the gold price continued to fall back and even broke the $1,200 barrier on August 14. This is to be accounted for by the strengthening of the dollar in conjunction with a continuing decline of gold demand in Q2 of this year, as stated in the World Gold Council’s Gold Demand Trends, Q2 2018.
Dropping 4% to 964.3 tonnes, the H1 total demand of 1,959.9 tonnes is the lowest since 2009.
Weakened gold demand was specifically due to lower ETF demand, having slowed sharply from the torrent of 2016/2017 - listed funds saw decent inflows to be accounted for by the World Gold Council to uncertainty stemming from Italian elections and the monetary outlook. But holding of North American listed funds fell by 40.6 tonnes as investors focused on domestic economic strength.
Key Topics Covered:Despite the Q2 decline, H1 jewelry demand scarcely changed from 519.4 to 510.3 tonnes; H1 2018 1,031.21 tonnes compares with 1,035.81 tonnes in H1 2017 Global gold backed ETFs sees another quarter of muted growth The course of the dollar against other currencies in % EU - Turkey 2016 refugees agreement not working Course of gold price compared to silver Course of gold price versus HUI-index Significant market correction tempers Pilbara’s gold rush Exploration companies Pilbara region, West Australia
Companies MentionedBitcoin People’s Bank of China World Gold Council
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Related Topics:Precious Metals
INDUSTRY KEYWORD: NATURAL RESOURCES MINING/MINERALS
SOURCE: Research and Markets
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PUB: 02/07/2019 08:06 AM/DISC: 02/07/2019 08:06 AM