Gold has really taken a beating this year. After reaching a high of $1,380 in March, the rallying U.S. dollar, economic growth and other factors have suppressed precious metals prices across the board.
While the low gold prices have provided a great buying opportunity, many investors are more than ready to see the value of their assets start going the other way.
Well according to analysts at RBC Capital Markets, the gold slump may be coming to an end with the year. Here are a few reasons you can keep your chin up about gold in 2015:
- ETF sales, a major culprit for the weakness in gold prices, seem to be slowing down.
- The Central Bank is buying, and recycling is at it lowest level in a while, which has severely tightened the physical market.
- Heavy seasonal demand from India and China is expected to continue.
- Strong indications that the European Central Bank may increase demand of the yellow metal.
- Backwardation – gold futures contracts are lower than the spot price.
- Russia attempting to diversify their reserve base with gold, as much as 250 tons this year alone.
In addition to hoarding gold, Russia is likely to start buying palladium, says according to Interfax new agency.
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