Gold price keeps climbing
By http://www.nationaljeweler.com
The price of gold, which just keeps climbing, increased a total of 5 percent in the second quarter, the World Gold Council (WGC) reported in its latest Gold Investment Digest.
According to the digest, gold finished the second quarter at $1,505.50 an ounce. The average price of gold during the quarter was $1,506.13 an ounce, up 9 percent over the average price in the first quarter of 2011.
The digest states that while concerns over sovereign debt in Europe played a role, gold’s continued ascent was more due to a combination of factors, including global inflation. The United States and other Western nations have seen the price of goods and services “accelerate considerably” over the past few months and long-term inflation expectations continue to rise.
In addition, economic recovery in the United States and certain countries in Europe has been “weaker than expected and labor markets remain in the doldrums,” the report notes.
While complete Q2 figures on jewelry demand won’t be available from the WGC until mid-August, initial indications are that demand in the Indian market remained strong despite an increase in local prices while overall demand in China jewelry continues to grow at a “healthy pace,” according to the digest. The report did not provide specifics on U.S. demand for gold jewelry.
To date in the third quarter, the price of gold has not stopped climbing. As of mid-day Thursday, gold stood at $1,611.20 an ounce, according to metals pricing Web site Kitco.com. In an interview with Bloomberg, one analyst predicted the metal would hit $1,900 an ounce by October.
The WGC said that its Q2 digest would be the final digest it would publish. The WGC, however, said it would continue to provide investors with market developments on a monthly and quarterly basis. This data and insight, as well as an archive of past digests, will be available on Gold.org.
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