Gold expected to hold

Press, 1 June 1985, Page 21

Gold expected to hold

NZPA-Reuter London The price of gold, depressed in recent years by the strong dollar and low inflation in the west, was unlikely to fall below SUS3OO an ounce but had little chance of rising much either, a leading mining

house, Consolidated Gold Fields, said. In her annual review of the bullion scene, Gold Fields’ economist Louise du Boulay, said gold demand improved sharply in 1984, especially from jewellers in India, the United States and

the East, with Japan importing a record 192 tonnes. However, investors continued to shun the metal in favour of the high yields available on financial instruments, and gold ended the year SUS7S an ounce cheaper than it started at

SUS3OO. The metal, which hit a peak of SUSBSO in 1980, dipped to a five-and-a-half-year low of ?US2B3 last February, but now trades at around SUS3I4. Miss Du Boulay’s survey said there appeared to be strong limits to its price movements at ?US3OO and SUS33O. “At the lower price of SUS3OO physical demand has been very strong and should continue to give support to the market at this level,” the report said. But it added: “At ... 5U5330, additional supplies have been released from the Communist Bloc, as well triggering profit taking from amongst the huge volume of (gold) bar purchasers last year.” The report said the performance of the dollar was still the most important factor in determining gold’s forties.