Gold

Gold: Gold price fell in 2013 as investors reacted to Fed tapering expectations, and money flowed into equities. World Gold Council (WGC) believe prices now reflect a consensus view to monetary policy normalisation and should be less sensitive to it. In the near term, WGC view the direction of the US dollar as well as the strength of Asian demand as key indicators of gold sentiment. Further, potentially reduced mine production at lower prices should limit the downside. Longer term, WGC see growth in the gold market supported by the expansion of developing economies which are expected to be the lion’s share of global GDP before the end of the decade – regardless of any potential slowdown in the near term.