In its latest World Demand Trends report, published today, the World Gold Council described a strong end to last year for gold demand, as a disappointing H1 gave way to robust growth in the second half of 2015. Indeed, in Q4, demand was up by 4% y/y, boosted by central bank buying. Meanwhile, supply fell by 10% y/y in Q4 as mine output dipped and recycling slumped, adding to the tightening in the market. Overall, these factors should continue to support prices, even if, as we expect, the Fed raises US interest rates again later in the year.
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