Themarket’sperceptionisthat“expansionarymonetarypolicies,withalltheirattendantinflationandcurrencydebasementrisks,arebackontheagendaforanunlimitedtimeandinseeminglyunlimitedsize”,saysMorganStanley。

Thisisfuellingdemandforgold,atraditionalcurrencyandstoreofvaluethatcan’tbedebasedthroughprinting。

Theemergingworld,notablycentralbankskeentodiversifyforeign-exchangeholdings,is“agrowingsourceofdemand”,saysDeutscheBank。

ChinawillovertakeIndiaasthemainsourceofjewellerydemandthisyear。

Meanwhile,productionproblemscausedbystrikesinSouthAfricasuggestthatsupplyisnotgoingtoexpandfasttomeetgrowingdemand。

Thetechnicalpictureisencouragingtoo,asUSassetmanagerBlackRockpointsout。

The50-daymovingaveragerecentlyroseabovethe200-daymovingaverage。

Thisso-called“goldencross”formationisastronglybullishsignalandlasthappenedaftertheFederalReserve’sfirstQEprogrammewaslaunched。

Ifgold’sperformanceoverthenextfewmonthsmirrorsitsactionbackthen,pricesshouldhit$2,400bynextsummer。

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