The World Gold Council (WGC) expects that demand for gold will be strong during 2010, driven by growing demand for jewellery in China and India as well as an increase in European and US investment in the context of continued economic instability, sovereign risk and the threat of a 'double dip' recession.
All eyes are on Europe once again to produce a plan that adequately addresses its longer-term bank and sovereign debt problems. There market has no room for failure at this point.
Investors flooded precious metals and manufacturing equipment makers in trading after Caterpillar's impressive earnings report and guidance painted a rosy picture for 2012.