Loose monetary policies and burgeoning sovereign debt across global economies is expected to help demand for gold in 2013, according to metals consultancy company, Thomson Reuters GFMS.
In the second update of its Gold Survey 2012, which comes ahead of the Gold Survey 2013 in April, GFMS said that gold price could touch a record high in the first half of this year, buoyed by central banks buying.
GFMS has forecast average gold price to rise to $1,800 an oz for the first half year ending June 2013. With regards to India, the report said that gold jewellery fabrication dropped 11 per cent in India last year, given the high price and import tax in the country.
India’s jewellery fabrication slipped to 593 tonnes, while recycling more than doubled to a record 132 tonnes.
“Central to these is the expectation that, in spite of growing market speculation that the decade long bull run for gold could be over, the consultancy remains positive on the gold price, forecasting gold to average an all-time high over the first half of 2013 and to recover back well into the $1,800s,” the agency said in a note.