Salient to Investors:
Mark Smallwood at Deutsche Bank said gold is increasingly being used as a monetary instrument as more high net-worth individuals seek to protect their wealth from the risk of rising inflation, with an increased preference for physical holdings.
Holdings in gold-backed exchange-traded products reached an all-time high yesterday. Bank of America said gold will climb to $2,400 by the end of 2014 if the Fed’s latest easing lasts until then. Deutsche Bank expects gold to exceed $2,000 in half1 2013.
George Soros and John Paulson increased their stakes in the SPDR Gold Trust, in Q2 2012. Central banks from Russia to South Korea are adding bullion to reserves.
Janet Kong at China Intl Capital said a clear, upward trend of gold prices will reignite investment demand in China and India.