News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
Wall Street
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • Stocks appear to be in a corrective phase but could get put to the test; levels and lines to watch in the days ahead. Get your weekly equities forecast from @PaulRobinsonFX here: https://t.co/H1BaTlIHjY https://t.co/zP3mjfslSD
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/Of1thU4zXw
  • Further your forex knowledge and gain insights from our expert analysts on AUD with our free guide, available today: https://t.co/p2FhEwym1E https://t.co/MjiYB85TSF
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkRxVw https://t.co/fIO9TP7D62
  • Trading Forex is not a shortcut to instant wealth, excessive leverage can magnify losses, and sentiment is a powerful indicator. Learn about these principles in depth here: https://t.co/lZFM8youtX https://t.co/Xja8DHUqlH
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here: https://t.co/IsnpfJhp91 https://t.co/9po5Lg4vnR
  • The Japanese Yen is eyeing the upcoming Bank of Japan rate decision and CPI figures, but JPY crosses will likely remain dependent on broader market sentiment. Get your weekly $JPY forecast from @FxWestwater here: https://t.co/x9rbQpPfWe https://t.co/2x1R5XTVea
  • Consolidation or bull flag? A bull flag is a continuation pattern that occurs as a brief pause in the trend following a strong price move higher. Learn how to better spot these formations here: https://t.co/yOEvLjKnct https://t.co/uCaWQiu4Ly
  • Crude and Brent oil are on track to extend higher as Gulf Coast supply disruptions and a positive OPEC report bolster sentiment. Uranium is on a massive surge, aided by the famous Wall Street Bets group. Get your market update from @FxWestwater here:https://t.co/XrpV0jcy8e https://t.co/g2To3LmUah
  • RT @michaeljburry: Read thread.
World Gold Council 2014 Report: Supply Levels as Demand Rallies

World Gold Council 2014 Report: Supply Levels as Demand Rallies

Walker England, Kara Dailey,

Talking Points:

  • Demand for Gold rallied in the 4Q increasing 6%, leaving the metal down just 4% (y/y)
  • Production is expected to cap in 2015 after slowing from 4.7 to 2.0 percent last year
  • Gold trades in a descending wedge

With unparalleled insight, in their latest report, the World Gold Council provides a wrap-up on the metals 2014 full year supply and demand trends. Findings reveal a shift in the distribution of gold as demand for the metal strengthened in the 4Q while supply fell flat. Seasonality and external factors altered the demand composition amongst the groups—jewelry, technology, investment, and reserves—for which gold is categorically used.

While down 4% (y/y), gold grew 6% in the final quarter of 2014, reaching 987.5t. The final up-tick in demand was driven by a surge in jewelry sales amidst the wedding, festival and holiday season. Growth was greatest in India (+8%), The United States (+9%) and The United Kingdom (+18%). As the largest component of above ground gold stocks, the increase in the demand for gold jewelry has aided the metal as it continues to recover from 2009’s low, when investors partook in distress selling.

Also aiding the recovery, an elevated demand for gold as an investment and central bank reserve asset. Net investments increased 2.0% (y/y) as outflows slowed and global access improved. Furthermore, as political tensions heightened, many central banks looked to diversify away from the US dollar, instead turning to gold as a safe haven asset. With purchases near a 50 year high and up 17%, the Central Bank of Russia was the leading force adding 173t to their stocks.

Conversely, demand for gold as an input for technology fell to an 11 year low as substitution became an increasingly popular alternative.

Supply paints a different picture; while demand looks to recover production is expected to cap in 2015. According to the council, lower gold prices will make it challenging for producers to invest in new projects. The shift is already present; production slowed to 2.0% last year after growing at a rate of 4.7% between 2008-2013. The net addition to the supply chain was just 5t after accounting for the reduction in recycling.

Gold Daily Chart

Gold Daily Chart February 2015

Chart Created by Walker England Using MarketScope2.0

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES