Details

  • Industry: Energy & Natural Resources, Energy & Mining Services, Mining
  • Type: Business and industry issue, Regulatory update
  • Date: 24/08/2012

Commodity Insights Bulletins

Commodity Insights Bulletin
KPMG's series of quarterly global bulletins provides insight into trends, issues and changes within the key mining commodity sectors.

Gold Insights: Q2 2012 

KPMG's Global Commodity Insights Bulletin on gold provides an overview of recent global events and outlook for that commodity, details of major developments and projects, and recent regulatory changes.
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Key insights

  • Average gold price declined by 4.8 percent in Q2 2012 to reach US$1,609.49/oz.
  • An improving US economy and the strengthening US dollar are making investors flock back to the US treasuries and they are, in turn, selling their portfolio holdings, including gold.
  • The market is expected to remain in deficit in 2012 as investor demand persists, especially in Asia. Economic uncertainty is expected to support the prices; however, price volatility is expected to continue throughout the year.
  • The outcome of the eurozone crisis is expected to affect prices, with profit booking, either to offset losses or to invest profits in other assets, providing a downward risk to the prices.
  • Central banks’ role as net buyers has been increasing significantly, especially in emerging economies.
  • Global growth in demand for gold is expected to increase by about 3 percent in 2012 due to economic uncertainty and low interest rates. Demand is expected to remain volatile.
 

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