February 17th, 11:08 am by Barbara Zigah
(eToro Blog) In its annual report the World Gold Council said that gold demand struck a record high last year, with demand driven primarily by India, China and Europe. In 2011 India’s total demand was 933 metric tons, and 500 tons of that intended for jewelry making; but while India remains the country with the highest demand, the report suggests that from the upward trend in demand, that China will be the front-runner this year. On OpenBook, gold traders are predominantly bullish, a logical stance in light of the recent Eurozone events. Guru peischen who allocates more than 45% of his portfolio to gold, scalped a long position earlier, has one open long with a positive return already and several other open longs which won’t need too big a rally to turn profitable.
OpenBook trader shudz2011, who uses a high-risk trading strategy, has 36 followers and 4 copiers to his credit. This trader is on track to record a 60% profit for the month and 274% profit for the quarter, and earlier closed a long position for a near 27% return. This trader allocates 56.4% of his trading portfolio to gold, which has provided him with a return of more than 20% over the last three months. Two open longs are already showing a profit, with the TP set at 1,787.50 and 1,791.65.
The unsettling events in the Eurozone were seen as the primary reason for the high demand as investors sought refuge in the safety of the precious mineral, and strictly as an investment vehicle annual demand increased by 5%. Central banks also increased their gold holdings in 2011, rising to 440 metric tons from 77 metric tons the year before. Total global demand increased to 4,067 metric tons, equivalent to $206 billion, which the Gold Council reports is the first time annual demand rose above the $200 billion mark.
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