TUESDAY, 10.30AM:
THE World Gold Council on Monday predicted that the recent slump in the bullion price is about to hit the brakes and bottom out.
“The market is reacting to rumours but the fundamentals are good,” said Rolf Schneebeli, WGC CEO for the Middle East and India. “Gold prices are overshooting and I expect we are extremely close to the bottom. It may fall a dollar or two more.”
Schneebeli pointed to recent encouraging indicators, including positive statements concerning bullion by European central bankers, as well as healthy demand for the precious metal. Reports of mine closures are also likely to have a positive effect on the gold price.
The bullion price slipped to its lowest level since 1979 late on Friday, when it changed hands for $283/oz.
The WGC monitors and classifies most gold producers, and tracks demand in countries that make up 80% of world production.