What's going on with gold - gold market largest quarterly surplus since Q4 2005?

Author: Eamonn Sheridan | Category: News

Thomson Reuters research says the global gold market is at a surplus of 250 tonnes.

This would be the largest quarterly surplus since the final quarter of 2005
The report says:
  • Falling mine production (822 tonnes, down 2.1%)
  • Healthy demand for physically-backed gold ETFs (over 100 tonnes for the third quarter in a row)
Is not enough to offset a surge in scrap supply and plummeting sales of jewellery in Asia

India & China saw jewellery consumption down 41% and 27% respectively year-on-year (despite an improvement in demand compared to the prior quarter)

The report says the gold price is unlikely to fall below $1,240
Next year the price is set to rally, averaging $1,420 an ounce

What say the gold traders?

By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose