According to Thomson Reuters GFMS, this year’s average price of an ounce of gold is $1690. However, it may exceed $1800/oz. the demand for gold is expected to increase by 3.25 up to 4628 tons.
It should be noted that the company is the leader in terms of analyzing the market of precious metals, including gold, silver, platinum and palladium.
What factors influence the demand for gold?
According to Eugene Olkhovsky, ’s leading expert in financial markets form Canada, there are many factors contributing the investment demand for gold. In particular, the demand for gold increases during the times of economic and financial instability, crises, when investors look for safe haven assets and central banks boost their gold reserves.
When the situation around the globe is relatively stable, investors are more willing to invest in riskier assets. Therefore, the demand for gold declines.
