Mine costs and Chinese demand to support gold prices
Adam Pike, News Editor
23 Apr 2014, 10:05 a.m.
Joe Foster, portfolio manager with Eck International Investors, believes increased physical demand from China and production cut backs will support the gold price.
Foster anticipates as soon as the gold price drops Chinese consumers will take the opportunity to increase their holdings, thereby supporting the gold price. In addition, Foster expects mine production to slow if the gold price drops below $1,200, resulting in reduced supply and increased prices.
“I see gold in the process of forming a base this year,” Foster said. “A lot of negativity is already priced into the gold market. So I don’t expect to see too much on the downside going forward for gold.”