(MENAFN- ProactiveInvestors)The bears that predicted the price of gold would be below US$1150 per ounce by the end of 2015 may yet see their predictions come to fruition After another tough week for the metal the spot price was languishing at its lowest price since 2010 and heading for a six week losing streak. Spot gold was US$1056 shortly after US trading got underway Friday with technical analysts saying the next level to watch for was US$1045. A brief rally at the start of the week when a Turkish fighter shot down a Russian bomber sparked some safe haven buying but ultimately proved an opportunity for more sales. US markets being shut for Thanksgiving Day did not help but the US consumer seem flush enough to judge from Black Friday takings while US economic data gets stronger as the end of the year nears. Meanwhile there was some disappointment in the figures for physical demand from India and China. On Thursday the All India Gems & Jewellery Trade Federation suggested gold demand may fall to an eight-year low of 150-175 tons in the fourth quarter of 2015. Poor investment demand and the impact of droughts on farmers' income were cited as reasons. India at one point was set to resume its traditional position as the number one consumer market for gold. It may still yet with the All India Federation still seeing gold demand this year above 1000 tonnes but also because its main rival China has seen its own demand tail-off recently. China imported 25% less in October than in the unusually strong previous month but the figure was also down on the year previously. Imports in the first ten months of the year are 1.6% higher at 653.5 tons but Commerzbank comments that to reach 2014's total imports in November and December combined would have to rise to 160 tons. That is well above October's number though Commerzbank suggests it is possible as last months was affected by the festival week at the start of the month. Chinese gold demand also generally increases towards the end of the year as the New Year Festival in February approaches. Gold supporters point to the figures from the Shanghai Gold Exchange as a better guide to Chinese demand with the numbers suggesting a record year for deliveries. How does that square with the price hitting a six –year low Their explanation is that is huge selling by institutions in the futures markets is keeping the price of gold down and once that turns a big rally is around the corner.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.