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.

Free Trading Guides
EUR/USD
Mixed
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
Oil - US Crude
Mixed
Wall Street
Mixed
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
Gold
Mixed
GBP/USD
Bullish
USD/JPY
Bullish
More View more
Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.01%, while traders in US 500 are at opposite extremes with 74.95%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/GcEJ8EmT9O
  • Forex Update: As of 12:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.78% 🇳🇿NZD: 0.45% 🇬🇧GBP: 0.42% 🇪🇺EUR: 0.35% 🇨🇭CHF: -0.04% 🇯🇵JPY: -0.51% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/DvaBAG6n53
  • UK PM Johnson says the UK are not compromising with the EU on fisheries and level playing field as position on those are fundamental $GBP
  • López Obrador hopes #USMCA will help tighten trade relationships between the US and Mexico. Get your currencies market update from @HathornSabin here: https://t.co/bZrUKSCGaS https://t.co/UWFdv7wCP0
  • Pronóstico $XAUUSD: el #oro consolida un canal ascendente hacia 1.750$ #gold #trading https://t.co/Tu8g57ZORD
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.89%, while traders in US 500 are at opposite extremes with 75.00%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/jJf4VBBPOr
  • Commodities Update: As of 10:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 2.72% Gold: -0.03% Silver: -0.15% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/HD3d67xvtz
  • Forex Update: As of 10:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.93% 🇬🇧GBP: 0.57% 🇨🇦CAD: 0.45% 🇪🇺EUR: 0.34% 🇨🇭CHF: -0.10% 🇯🇵JPY: -0.17% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/1d82miYwh3
  • Coming up at half past the hour: my weekly webinar on market #sentiment. Please join me if you can. You can sign up here: https://www.dailyfx.com/webinars/181540619?ref-author=essex&CHID=9&QPID=917711
  • Indices Update: As of 10:00, these are your best and worst performers based on the London trading schedule: France 40: 1.74% Germany 30: 1.12% FTSE 100: 0.88% Wall Street: 0.77% US 500: 0.69% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/1IbO8jbvOv
World Gold Council 2014 Report: Supply Levels as Demand Rallies

World Gold Council 2014 Report: Supply Levels as Demand Rallies

2015-02-19 16:53:00
Walker England, Kara Dailey,
Share:

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

News & Analysis at your fingertips.