Gold prices which fell below US$1,300/oz for the first time since the Brexit announcement in June 2016 is likely to spur the demand of the commodity, as per the World Gold Council report. The price fall have been driven by speculation of a scaling back in the ECBs asset purchase programme, combined with rising expectations of a US rate hike in December.
Consumers and investors may see the price decline as a good buying opportunity, as many have been waiting for a price pull-back before entering the market, WGC report said.
Even though central banks may start to normalise monetary policies, such a prolonged period of extraordinary measures has led to a structural shift in asset allocation that will linger much longer. In this new normal of lower returns and higher uncertainty, Gold has an important role to play in the portfolios of investors large and small, they added. - Commodity Online