Gold market sees largest quarterly surplus since Q4 2005 – Thomson Reuters

According to a latest report on gold, published by Thomson Reuters research, the global gold market stands at a surplus of 250 tonnes

Key findings from the report:

Falling mine production (822 tonnes, down 2.1%)

Healthy demand for physically-backed gold ETFs (over 100 tonnes for the third quarter in a row)

Is not enough to offset a surge in scrap supply and plummeting sales of jewellery in Asia

India & China saw jewellery consumption down 41% and 27% respectively year-on-year (despite an improvement in demand compared to the prior quarter)

The report says the gold price is unlikely to fall below $1,240

Next year the price is set to rally, averaging $1,420 an ounce