- Hedging interest of producers/miners.
- Above ground supply of gold from central bank's sale, reclaimed scrap, and official gold loans.
- World macroeconomic factors such as the US Dollar, interest rate and economic events.
- Commodity-specific events such as the construction of new production facilities or processes, unexpected mine or plant closures, or industry restructuring.
- In India, gold demand is also determined to a large extent by its price level and volatility.
Global Scenario
London is the world’s biggest clearing house.New York is the home of gold futures trading.Zurich is a physical turntable.Istanbul, Dubai, Singapore, and Hong Kong are doorways to important consuming regions.Tokyo, where TOCOM sets the mood of Japan.
World investment amounted to 1614 MT in 2012, broadly flat year-on-year, but the approximate value of this demand reached a new record of almost $87 billion.Major drivers of this strong investment included further monetary loosening in the developed world, continued sovereign debt crisis,rising longer-term inflation fears and in key markets,negative real interest rates coupled with limited attractive risk-free investment alternatives to gold.In 2012, the gold mine production increased by 12 MT to 2848 MT and the combined demand for bars & coins dropped from 1515 MT to 1256 MT.
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