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There has been an extensive surge in the gold exchange traded fund holdings and there is absolutely no shortage of momentum there. Investors are buying gold as there are many uncertainties heading into 2019.
Global gold production is expected to be somewhat stable in 2019, with one analytical firm forecasting a fall of half a percentage point and another looking for a rise of less than that.
Silver production declining 0.7% to 851 million ounces, Analysts look for declines in Asia, South America and Europe, but increases in Africa, North America and Australia-Oceania.
Russia increase demand for gold as sales were lower in 2018 compared with the previous year. To a greater extent it was caused by the activities of Russia’s Central bank, “which was our most active client this year and which was significantly increasing its gold reserves,” says VTB Capital.
Gold has been tracking steadily higher through December… On the low side, there appears to be good support at $1,265 and we expect plenty of buying interest around the 200-day moving average at $1,251.” Much of this increased buying pressure is being driven by geopolitical tensions threatening to disrupt global markets, along with uncertainty in stock prices.
Is gold a sell, Gold prices are primarily getting support on the back of safe-haven buying due to concerns about the health of the global economy and heightened volatility in risk assets.
Upbeat US data and signs of easing trade tensions between Washington and Beijing limited demand for the metal. Robust sales during the U.S. holiday shopping season indicated consumer confidence was not entirely dented by recent volatility in the U.S. stock markets.