Tags: World Gold Council | gold | volatility | risk

World Gold Council: Now Is 'Prime Opportunity to Add Gold'

By    |   Tuesday, 15 July 2014 02:57 PM

Although gold has been falling recently, the metal increased 9.2 percent in the first half of the year, which took many market participants by surprise, as most analysts predicted lower gold prices this year.

While investment demand has remained tepid, many market participants are bullish on the precious metal.

"We consider that the current environment of high bond issuance, tight credit spreads and record low volatility continues to offer a prime opportunity for investors to add gold," the World Gold Council says in its mid-year report.

Editor's Note:
Seniors Scoop Up Unclaimed $20,500 Checks? (See if You qualify)

"In our view, gold can reduce overall portfolio risk, and it is cheaper to implement than many volatility-based strategies."

In addition, the Council noted, " While investment demand in some sectors has in fact been tepid . . . we see that interest in gold is gaining momentum. Net long positions in the futures market have gradually increased as short positions have been covered, ETFs [exchange-traded funds] have experienced inflows in recent months, and coin sales are increasing."

Gold traded near the lowest price in more than three weeks in New York. Gold for August delivery was little changed at $1,298.30 on the Comex by 7:23 a.m. in New York. It fell to $1,292.60 Tuesday, the lowest since June 19. Bullion for immediate delivery added 0.3 percent to $1,297.87 an ounce in London, according to Bloomberg generic pricing.

Jeffrey Currie, head of commodities research for Goldman Sachs, reiterated his $1,050 year-end price target earlier this week.

But not everyone shares Currie's pessimism. Hedge funds increased their bullish gold positions for a fifth consecutive week, and assets in gold-related exchange-traded products rose, according to Bloomberg.

In CNBC's latest survey of market professionals, 90 percent of the 20 respondents predicted that gold would rise this week for the seventh straight week.

"The safe-haven stars are currently aligned for gold," Scott Carter, CEO Lear Capital, told CNBC. "The world is a powder-keg of unrest. Quite frankly anyone that is not looking at gold as a timely investment is simply not paying attention."

Editor's Note: Seniors Scoop Up Unclaimed $20,500 Checks? (See if You qualify)

© 2019 Newsmax Finance. All rights reserved.

   
1Like our page
2Share
Markets
Although gold has been falling recently, the metal increased 9.2 percent in the first half of the year, which took many market participants by surprise, as most analysts predicted lower gold prices this year.
World Gold Council, gold, volatility, risk
362
2014-57-15
Tuesday, 15 July 2014 02:57 PM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved