Gold spot price has climbed nearly 12 percent so far in 2012, supported by positive economic data and monetary policy guidance in the US.
Centerra Gold sees continued pressure from wage inflation and higher oil prices in 2012. VP of Investor Relations John Pearson said they are trying to cut costs and increase efficiency.
Debate over the potential of extensive gold reserves held by central banks to resolve the euro zone's economic problems have been pervasive in recent months just as fear of exposure to the sovereign debt crisis has grown. In fact, reports of the German central bank liquidating some of its gold reserves for the first time in almost a year have surfaced, selling 150,000 troy ounces in October.
Gold investment is becoming more accepted as a substitute for currency by industry observers, particularly in light of the context of all four major currencies experiencing structural debasement.
Even as spot market gold prices have traded at historical highs over the past few months, central banks are increasing positions and demonstrating support for the precious metal.
In reviewing the results of a recent survey, Global Head of Metals Analytics, Philip Klapwijk indicates, We are seeing central banks now operating very much on the buy side of the market. The selling we had seen from Europe has dried up and that’s left those buyers of choice really the only active players in the market."
The gold price saw its biggest decline in nearly three years last month as considerable stock market losses resulted in the liquidation of gold positions bringing gold down more than 20 percent from a record high of $1920.30 per troy ounce and provoking a period of intense volatility for gold.
William Rhind, Head of US Operations for ETF Securities described his perspective on relative gold price movements, “we are going to see a little bit more consolidation and stability around the gold price we saw a big move in the last few days over $100 as its moved up from its low in the $1500s.I think that right now we are looking for a little bit of stability.”
Although forecasting the price of gold has recently become an activity that has enjoyed as much consideration as the universal pastime of speculation for gasoline prices at the pump, recent global conferences have attracted some interesting participants in projecting future gold price targets.
In 2010 some analysts thought John Embry's forecast of the 2012 gold price, which placed the yellow metal between $1,500 and $2,000 an ounce, was too optimistic. Now it seems that Embry may have undershot the mark.
Friday, February 3, 2012