Continued Chinese gold demand and dwindling supply
Yesterday saw the June data of net imports into China through Hong Kong released at nearly 105 tonne (on top of their keeping all they mine as the world’s biggest producer). This takes year to date to an incredible 1160 t which is almost the same as that for the whole 2012 year in just 6 months. Offsetting this strong demand was the World Gold Council stating we will likely see production fall after producers around the world have written down at least $21b in the last 2 months and reducing their workforce and operations. Barrick Gold alone looks to close, sell or scale back 12 mines around the world. WGC predicts gold will go to $1500 by year’s end.