Summary: The gold price has been range trading despite the reduction of monetary stimulus in the US and expectations the Federal Reserve will hike interest rates. But the US central bank is likely to restart quantitative easing in the future if there is some turn for the worse. This means official buying of gold will likely remain strong. China holds a low proportion of its reserves in gold and any increase would also support demand.
Key take-out: A bull run in gold is unlikely to re-emerge but underlying demand is otherwise strong and likely to get stronger.
Key beneficiaries: General investors. Category: Commodities.