(Bloomberg) – Gold may continue a rally from a two-month high as an boost in demand from jewelry purchasers in China and India assists contradict a fall in assets under exchange-traded funds backed by bullion.
Charges may rally to as much as $1,550 an ounce by the end of the year, said Jeffrey Rhodes, organizing controller of the economic organizations partition of the Kaloti Jewelry assembly, a Dubai-based gold dealer and refiner. There are no signals of demand abating from India and China, which account for about 60 per hundred of international gold consumption, he said at the India Gold conference in Jaipur yesterday.
A rally may help trim gold’s first decrease in 13 years after some investors lost belief in the steel as a shop of worth amid anticipations that the U.S. finances was retrieving. The steel has rebounded 17 per hundred since coming to a 34-month reduced of $1,180.50 an ounce on June 28 as demand for jewelry, bars and coins soared from India to ceramic and Turkey. The rush in personal demand may help contradict a selloff in bullion-backed exchange-traded capital by investors including billionaire John Paulson.
Rhodes said “Underlying power in personal demand will underpin gold prices and there have been signals of western investors coming back to gold,” also added “The finances are doing much better but we are still in a world of negative real interest rates, so till then gold will flourish. There is much more upside promise than downside.”