World Gold Council: Gold prices will not increase

Baku. 16 December. REPORT.AZ/ Globally, on the background reduction in current income of population the demand for gold will decrease, which in turn will prevent gold prices to hike.

Report informs, John Mulligan, Director of marketing company World Gold Council said in an interview with Gazeta.ru.

According to him, in January-November gold prices increased by 23% and then decreased by 13% and amounted to 1 130 USD per ounce. Earlier this year, the negative factors in financial markets and low level of interest rates, focused investors on gold as secure financial instrument gold. But now, interest rates started to increase in the world, investors have turned to riskier assets. The most important thing is problems in China and India seriously reduced demand for gold.

Thus, as a result of monetary reforms in India 96% of banknotes in the country changed. The weakening of the yuan and decrease in purchasing power of population has led to a decrease in investments. Against the background of the above-mentioned factors gold prices will remain at this level in the near future and most likely will fall.