» Gold to be stronger - SA economists

Strong demand for gold is price supportive - WGC economist

In an interview on Radio 2000 @ 18:42 on Wednesday, 7 September 2005

[miningmx.com] -- Figures released today by the World Gold Council show the first half of 2005 continued to see exceptionally strong demand for gold, with the sixth consecutive quarter of year-on-year growth for the yellow metal.

Jill Leyland, an economist at the World Gold Council, attributes this to three main factors. "There is a strong global economy," Leyland said, speaking on the Moneyweb Power Hour broadcast on Radio 2000. "Conditions have been particularly good in some of our key markets."
Resurgance of investor interest in gold
Leyland also believes that there has been "a resurgance in investor interest in gold as concerns over the dollar grow. Gold is of course a dollar hedge," she added.

The last reason cited by Leyland for the precious metal's strong demand is that they are seeing "very positive results of gold marketing and promotions initiatives started a couple of years ago."

Although she declined to give a gold price forecast, Leyland concurred that the strong demand seen for the metal is price supportive.