Salient to Investors:

Gold has advanced for 11 consecutive years, increasing about sixfold since the end of 2000. Speculators’ net-long position is 61 percent below the all-time high set in August.

World Gold Council expects central banks to buy 400 tons of gold in 2012 versus 456.4 tons last year, the most in almost five decades. IMF said central banks combined reserves have increased for 14 consecutive months through March, the longest streak since 1964.

UBS said Indian demand remains lackluster, there is no acceleration in the fear trade, while transactions in Europe are down from last year.


Bloomberg survey shows 24 gold traders are bullish, 6 are bearish.

JPMorgan Asset Management is bullish regardless of the outcome in Europe, and a QE3 would be good for gold.

Kitco believes the Fed will not offer another free lunch to the speculative crowd.

Adrian Day said investors’ concerns have shifted from the risk of a severe global economic decline to the central bank response, which is positive. Whatever the outcome in Europe, the result will be easier money, which is bullish for gold.

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