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Gold set for a gradual recovery in 2016 - GFMS Reuters survey

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 27, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - 'Gold Survey: Q4 2015 Review and Outlook', conducted by GFMS Thomson Reuters, showed that gold supply dropped by 7% in the quarter ended December 2015 due to an estimated 4% drop in global mine output, the largest quarterly reduction since 2008.

    Globally, physical gold demand rose 2% yearly in Q4 2015, as a strong pickup in net official sector (mostly by central banks) purchases and a moderate increase in retail investment were partially offset by reduction in demand from the jewellery and industrial sectors.

    GFMS noted in its report, "Global gold prices are set for a gradual recovery in 2016, particularly in the second half, driven largely by improving fundamentals, as we expect to see a rebound in pent-up demand from Asia and a further contraction in global mine production."

    "We are likely to see only two small rises by the FED going forward, at most. This should again strengthen market sentiment. We expect a slow recovery in 2016 in dollar terms, with the gold price trading above $1,200/oz towards the end of the year, and averaging $1,164/oz."
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