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Epic GOLD
Time:
Mid Price: 1121.75
Change Today: -3.00 Descending
Change % Today: -0.27 Descending
Fifty Two Week High: 1212.50
Fifty Two Week Low: 870.25
Market Capital: 0.00
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Period Price
Now: 1121.75
3 Months ago:
6 Months ago:
1 Year ago:
Additional information
Additional Information
Market: LME
Sector: General Mining - Gold
Epic: GOLD
News: Latest news
Web Site: GOLD
Other Articles: 17-03-201016-03-201016-03-2010

GOLD

Gold is a chemical element with the symbol Au and the currency code is XAU. It is a highly sought-after precious metal which, for many centuries, has been used as money, a store of value and in jewelry. The metal occurs as nuggets or grains in rocks, underground "veins" and in alluvial deposits. Modern industrial uses include dentistry and electronics, where gold has traditionally found use because of its good resistance to oxidative corrosion.

Thursday, November 19, 2009

World Gold Council Says Central Banks Will Continue To Diversify Dollar Exposure

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The World Gold Council (‘WGC’) said that demand for Gold is likely to remain well supported by continued economic and currency uncertainty, inflation concerns and the search for diversification. According to the industry’s lobbying group, central banks were likely to continue ‘diversifying their dollar exposure in favour of the proven store of value represented by gold’.


In its Quarterly Report, The World Gold Council says that total identifiable gold demand reached 800.3 tonnes in the third quarter of 2009. With a value of approximately $24.7 billion, global gold demand was up 15% from the previous quarter. The WGC said the growth in demand was driven by ‘gold's long-term store of value and wealth preservation qualities’.


The World Gold Council is funded by the world's leading gold mining companies with the aim of stimulating and maximising the demand for, and holding of, gold by consumers, investors, industry, and the official sector. The World Gold Council is also instrumental in working to lower regulatory barriers to the widespread ownership of gold products, helping to develop distribution systems and promoting the role of gold as a reserve asset in the official sector.


On a year-on-year basis, the quarterly Gold Demand Trends Report, shows that whilst demand increased in the quarter, overall demand is 34% lower than in Q3 2008. The WGC said that year-on-year comparatives largely reflected the ‘exceptionally strong’ demand last year, which was in direct response ‘to the deepening global financial crisis’ in that period.


The WGC said that Jewellery and investment demand in non-western markets rebounded from the very low levels seen in the first quarter, while industrial demand was recovering in response to an improvement in economic conditions.


According to the report, total supply contracted slightly - mainly due to an increase in producer de-hedging and sales in the ‘official sector’. Since September these trends have been highlighted by several reports in the media, notably Barrick Gold (NYSE: ABX) was among the high profile producers who ended their hedging strategies. Despite the reduction in overall supply, the WGC said that mine production showed a ‘firm improvement’ during the quarter, reaching 670.0 tonnes.


Aram Shishmanian, CEO of World Gold Council, commented:


"This quarter's demand trends demonstrate the diverse and robust nature of the gold market which underpins the gold price ... In the official sector, we expect to see a continuing trend of central banks diversifying their dollar exposure in favour of the proven store of value represented by gold."

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